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Table of Contents Page
Executive Summary 4
Part One - Introduction 13
1.1 About the Hong Kong Quality Assurance Agency (HKQAA) 13
1.2 About The Hongkong and Shanghai Banking Corporation Limited (HSBC) 14
1.3 About ISO 26000 Guidance on Social Responsibility 14
1.4 Recent Trends in Social Responsibility 15
1.5 The Initiation of the HKQAA - HSBC CSR Index 16
Part Two – HKQAA - HSBC CSR Index – Hong Kong CSR Advocate Index 17
2.1 The Hong Kong CSR Advocate Index 17
2.2 The Forty-five CSR Practices 17
2.3 Scoring Approach 22
2.4 Benchmarking Process 24
2.5 Information Security and Confidentiality 24
2.6 Quality Assurance 24
2.7 The Participating Organisations 25
2.8 Summary and Recommendations 26
2.8.1 Seven Core Subjects and the Trends 26
2.8.2 Comparing Private and Public Listed Companies 30
2.8.3 Comparing the Manufacturing, Service and Construction Sectors 31
2.8.4 Highest Average Score Identified in Particular CSR Practices 31
2.8.5 Lowest Average Score Identified in Particular CSR Practices 32
2.8.6 Organisational Governance 33
2.8.7 Human Rights 34
2.8.8 Labour Practices 34
2.8.9 The Environment 36
2.8.10 Fair Operating Practices 37
2.8.11 Consumer Issues 38
2.8.12 Community Involvement and Development 40
2.8.13 Carbon & Energy Management Advocate Sub-Index 41
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Table of Contents (continued) Page
Part Three – HKQAA - HSBC CSR Index – Hong Kong 100 CSR Index 42
3.1 The Hong Kong 100 CSR Index 42
3.2 CSR Disclosure Indicators 42
3.3 Methodology 43
3.4 Information Security and Confidentiality 43
3.5 Quality Assurance 44
3.6 The Selected 100 Companies from 14 Industrial Sectors 44
3.7 Summary and Recommendations 45
3.8 Detailed Findings for Respective Sectors 46
Part Four – HKQAA - HSBC CSR Index – Research on Effectiveness of
the CSR Advocate Index
52
4.1 Research on Effectiveness of the CSR Advocate Index 52
4.2 Methodology 52
4.3 The 6 Selected Advocates from 36 HKQAA - HSBC CSR Advocates 53
4.4 Summary of Findings 53
4.5 Detailed Findings of the Chosen Advocates 54
4.6 Conclusion 62
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Executive Summary
The Hong Kong Quality Assurance Agency (HKQAA) has always been the advocate for
promoting environmental management, sustainability and corporate social responsibility
(CSR). The Hongkong and Shanghai Banking Corporation Limited (HSBC) is a leading global
financial services organisation that is committed to promoting CSR in society. With the
mission of enhancing Hong Kong organisations’ competitiveness and commitment towards
sustainability, the HKQAA cooperated with HSBC to launch the HKQAA - HSBC CSR Index.
The HKQAA - HSBC CSR Index consists of two series of indices, namely, the Hong Kong
CSR Advocate Index and the Hong Kong 100 CSR Index. 2009 is the base year for analysis.
Hong Kong CSR Advocate Index
The Hong Kong CSR Advocate Index is an annual voluntary benchmarking project in which
25 organisations participated in the pilot programme in 2009, 27 participated in 2010 and 23
participated in 2011. The project aims to promote the application of the ISO 26000 Guidance
and help the participating organisations learn of their CSR maturity.
The guidance of ISO 26000 was consolidated into forty-five recommended CSR practices
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, an additional “Carbon & Energy Management Advocate Sub-Index” under the
umbrella of the HKQAA - HSBC CSR Advocate Index 2011 has been added 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.
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In summary, the Hong Kong CSR Advocate Index, which represents the overall average
score of the participating organisations, was 4.62, 4.57 and 4.53 in 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 for the two
years are summarised in the chart below. As illustrated, the scores rose slightly this year
demonstrating an improvement in the overall performance of CSR.
The scores also indicated that organisations have generally implemented mature systems to
manage CSR-related issues. At the same time, some new joiners capitalised on the
characteristics of the Index to benchmark their performance against the trends so as to
facilitate the promotion of CSR culture within their organisations. The overall results
demonstrated that the importance of CSR has been gradually recognised. Some good
practices are outlined in this report.
4.43
4.50
4.53
4.59
4.61
4.80
4.87
4.44
4.59
4.50
4.73
4.56
4.79
4.77
4.35
4.40
4.29
4.65
4.52
4.61
4.70
3.50 4.00 4.50 5.00
The Environment
Community Involvement and
Development
Fair Operating Practices
Human Rights
Organisational Governance
Consumer Issues
Labour Practices
Average Score of CSR Seven Core Subjects
Average score in 2009
Average score in 2010
Average score in 2011
As revealed from the scores, Labour Practices and Consumer Issues are the subjects that
most organisations have effective mechanisms by which to address the recommended
practices.
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Labour Practices
Labour Practices scored highest among the seven core subjects. Participating organisations
in general were showing great concern for labour needs, such as occupational health and
safety, staff development, training and labour relations, etc. In response to legal requirements,
it was observed that some participating organisations conducted engagement meetings with
their staff members to discuss the new wage and salary arrangements. Meetings with
vendors, suppliers and sub-contractors were arranged by the participating organisations to
communicate the Minimum Wage Law. Some of the participating organisations carried out
measures to ensure compliance with the Minimum Wage Law such as including the
development of a Code of Conduct for suppliers and contractors. Furthermore, it was evident
that skill-enhancing and learning programmes were provided for the staff members by the
participating organisations.
Consumer Issues
Similar to previous years, addressing consumers’ expectations and needs has always been a
major focus of those participating organisations. It was observed that most organisations
exerted extensive effort on the development of innovative products introducing the use of
socially- and environmentally-beneficial materials and adoption of cleaner and greener
production methods. Participating organisations are actively enhancing consumers’
awareness of sustainable consumption by providing instructions and education to consumers.
Consumer engagement programmes were established in some organisations as consumers
currently require higher responsiveness on social responsibility issues. Among the
participating organisations, having a ISO 9001 certified quality management system
seemingly is an effective tool for ensuring customer satisfaction and managing complaints.
Organisational Governance
The performance of Organisational Governance has been steadily maintained. Systematic
procedures are in place to govern the business operations in almost all participating
organisations. Two-way stakeholder communication mechanisms were well-developed and
exercised. The participating organisations continue to scrutinise the compliance status of the
applicable laws and regulations as well as relevant international norms. Codes of conduct or
ethics and staff manuals were developed in which organisational standards are defined.
Nevertheless, it was observed that disclosure of organisations’ policies, decisions and
activities for which they are accountable, including the known and likely impacts on society
and the environment as yet still has room for improvement.
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Human Rights
The participating organisations were well aware of the discrimination issues. Well-established
systems are in place to prevent engagement of child labour or forced labour. Some of the
participating organisations provide working opportunities for vulnerable groups and minorities.
Various communication channels with stakeholders regarding human rights issues were
established by the participating organisations. However, systematic risk assessment for
evaluating the potential impact of abuse of human rights resulting from supply chain
performance as well as internal operations was not generally conducted.
Fair Operating Practices
Compared to the results of previous years, more participating organisations raised the issues
of fair competition. Some of them employed legal consultants to evaluate the organisation’s
existing operating practices in order to prevent the engagement of anti-competitive behaviour.
Some have established plans to prepare for the upcoming Competition Law. It was evident
that sourcing of fair trade products, raw materials and engaging accredited fair trade
companies and social enterprises were practiced in some participating organisations.
Meanwhile, participating organisations continue to implement programmes to pursue
corruption prevention and protection of property rights.
Community Involvement and Development
The participating organisations have shown continuous efforts in supporting the community
and volunteerism. Philanthropy is the common approach towards community development.
Programmes are implemented by the participating organisations to provide care and
assistance to the vulnerable groups. Promotion of healthy lifestyles is being emphasised by
most of the participating organisations. Heritage conservation and community skills
development are the areas that can be further strengthened. Some participating
organisations have committed to infrastructure development in the areas where they operate.
The Environment
The Environment is an area in which the participating organisations generally performed well.
Most of the participating organisations incorporate environmental considerations in their
organisation’s policy and strategy. Some participating organisations implement campaigns
and measures to enhance energy performance and reduction of greenhouse gases. It was
observed that some of the participating organisations conducted surveys to gather
stakeholder feedback with respect to their environmental performance. Internal training
programmes on environmental protection are regularly arranged by some of the participating
organisations. However, a systematic approach to managing greenhouse gas emissions was
not widely adopted.
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Carbon & Energy Management Advocate Sub-Index
The overall average score of the Carbon and Energy Management Sub-Index is 4.29 out of 5.
Despite the participating organisations giving a good performance in The Environment, the
overall result of the Carbon & Energy Management Advocate Sub-Index indicated that the
maturity level of the participating organisations varied from organisation to organisation. It
was observed that a few pioneers implemented advanced programmes to enhance energy
performance.
Most of the participating organisations have established criteria for effective operation and
maintenance of significant energy use. 22 out of 23 organisations have conducted an energy
review to measure the energy use of their operational processes. Most of the participating
organisations consider energy performance improvement opportunities while developing new
projects. However, coverage of energy sources can be further extended and definition of
energy baselines is recommended for future comparisons of performance. Almost half of the
participating organisations implement measures to reduce Greenhouse Gas (GHG)
emissions associated with their activities, products and services.
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Hong Kong 100 CSR Index – Executive Summary
The Hong Kong 100 CSR Index is a research project regarding organisations’ disclosure of
CSR issues. One hundred organisations from 14 sectors in Hong Kong were selected for
analysis. The project aims to outline the CSR behaviour of Hong Kong organisations by
studying the CSR disclosures made by the sampled organisations. With reference to ISO
26000, a set of 16 CSR indicators was developed to study and quantify the CSR disclosures
made by the sampled organisations. The research is conducted on a yearly basis.
The research is based on the CSR disclosures made by the selected organisations, which
includes their websites, policies, reports and other publicly available information. A score of
“1” will be assigned if an organisation has implemented activities and practices in relation to a
CSR Disclosure Indicator. On the contrary, a score of “0” will be assigned if such relevant
activities are not found in the organisations’ disclosed information. The proportion of “1”,
scores which indicates the presence of relevant activities and practices, out of the 16 CSR
Disclosure Indicators will form the Index.
In summary, the Hong Kong 100 CSR Index in 2011 is 67, while that in 2010 and 2009 were
66 and 63 respectively. It shows that the level of CSR disclosure among various sectors
remains stable but with slight improvement. The Education sector has continued to
demonstrate a high degree of transparency for CSR programmes. Manufacturing sectors
generally provide only limited information about their CSR programmes.
It is worth noting that significant improvement has been found in the integration of CSR into
organisational policy and it has the highest score among the 16 indicators. This demonstrates
that organisations’ commitments to CSR and awareness of CSR are increasing. Many of the
organisations have implemented corporate governance programmes to ensure sufficient
control over the operations.
Like last year, most organisations are proactive in disclosing their social performance,
specifically their involvement in the community. This indicator has the highest score among
the 16 indicators again in 2011. Support and participation in voluntary services and
community development are common ways for organisations to demonstrate their CSR
commitment. Significant improvement has also been found in supporting educational or
cultural development in which the score has increased from 66 in 2010 to 84 in 2011.
Meanwhile, these organisations may consider enhancing their disclosures about complaints
and dispute handling, consumer education and human rights issues, which are ranked low in
this research.
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More than 80% of the selected
organisations have disclosed their staff
development and training programmes;
particularly training that develops
employees’ workplace skills. However,
higher transparency of the
programmes about enhancing staff’s
well-being, such as workplace safety
and healthy living, is recommended.
The organisations, in general, have
well-established environmental policies
or have implemented pollution
prevention and recycling programmes.
They have also paid more attention to
climate change and sustainable
resource management. More
environmentally friendly production
practices are chosen and adopted
when compared to 2009 and 2010. However, achievement of these energy-efficient
programmes was not common. Organisations are advised to establish energy management
systems as a tool to facilitate quantification and communication of their achievements on
energy performance. Therefore, organisations are advised to establish energy management
policy as a tool to enhance transparency and quantify their reduction targets of carbon
emissions.
Similar to the previous two years, the disclosure on Consumer Issues remains at a low level,
in which there are only 49 organisations disclosing their performance to Consumer Education
and 23 organisations disclosing their dedication to Complaint and Dispute Handling
Programme. It is important to note that with the rising concern for consumer rights in our
community, people will tend to consume goods and services provided by organisations which
have high transparency in addressing and responding to Consumer Issues.
The detailed analysis of the HKQAA - HBSC CSR Index will be uploaded onto the HKQAA
website by the end of 2011.
22
40
49
61
64
64
64
70
76
77
77
84
84
85
87
87
34
57
52
70
68
60
63
65
86
69
72
66
80
82
89
77
21
49
49
73
63
60
51
56
77
73
69
62
82
72
86
67
0 20 40 60 80 100
Complaint and Dispute Handling Programme
Disclosure of Human Rights Issues
Consumer Education
Stakeholder Engagement Programme
Sustainable Resource Usage Management
Programme
Climate Change Mitigation Programme
Promotion of CSR in the Sphere of Influence
Occupational Health and Safety Management
Programme
Contribution to Community Development
Disclosure of Environmental Performance
Pollution Prevention Programme
Supporting Educational or Cultural Development
Corporate Governance Programme
Staff Development and Training
Disclosure of Social Performance
Integration of CSR in organisational policy
Average Score of Respective
CSR Disclosure Indicators
Average Score 2009
Average Score 2010
Average Score 2011
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Research on Effectiveness of the CSR Advocate Index – Executive Summary
The Research on Effectiveness of the CSR Advocate Index aims to find out how participation
in the HKQAA - HSBC CSR Advocate Index can benefit the organisation. Out of the 36
participating advocates in 2009 - 2010, we selected six from different backgrounds (such as
government body, private limited company, listed advocates and multinationals). All of them
have implemented measures of corporate social responsibility for 12 to 18 months since their
enrolment in the HKQAA - HSBC CSR Advocate Index. The research is based on the
feedback from interviews with the top management at the selected advocates.
In summary, all of the chosen advocates have been benefited from participation in the
HKQAA - HSBC CSR Advocate Index. For Organisational Governance, most advocates
enhanced the corporate management tools for their staff, including internal guidelines,
policies and procedures on avoiding conflicts of interest, anti-corruption, etc. and as a result
reduced the risk of corporate governance. They agree that corporate governance has
become more systematic and that operational efficiency has been improved along with an
improvement in organisational governance. Channels for mutual communication and
feedback were improved while protection and management of business confidentiality was
also strengthened.
For Human Rights, one of the advocates indicated that it has effectively avoided sexual,
racial and all other kinds of discrimination in the workplace. The ability of staff to handle
disputes and issues involving minorities has also improved.
For Labour Practices, most of the advocates state that the staff turnover rate has been
dropping since the execution of CSR policies. There is an improvement of goodwill and
advocate reputation and it is reflected in the advantages gained in recruitment of staff. Staff
morale, sense of belonging and sense of responsibility have significantly increased. Job
satisfaction of staff was enhanced which resulted in an improvement in productivity.
For The Environment, almost all advocates have benefited from the reduction of energy costs
and carbon emissions. Some of the advocates agree that the sense of environmental
protection of workers has been improved and that they are more aware of energy saving and
efficient use of resources in production. Some found that more new clients are attracted to
consume their products and services.
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For Fair Operating Practices, an advocate indicated that by developing a fair, open
competition platform for its vendors, suppliers and sub-contractors, it attracts more bids on its
contracts, and as a result lowers the overall costs of projects.
For Consumer Issues, advocates agree that participation in the HKQAA - HSBC CSR
Advocate Index and other kinds of CSR measures has brought a positive image and
enhanced the public’s understanding of advocates’ efforts in CSR. For most of the advocates,
complaints about products and services from clients have decreased significantly, customer
satisfaction has been significantly improved, and the brand and reputation of the advocate
have improved.
For Community Involvement and Development, one of the advocates mentioned that the
efforts on environmental conservation work have attracted the attention of its staff, customers,
suppliers and the general public on environmental protection and natural species
conservation.
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Part One – Introduction
1.1 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. Our 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 global direction and the changes in customer needs, the HKQAA is
relentless in exploring new opportunities for serving the market. In the past 20 years, not only
have we increased the number of certificates significantly, but we have also strengthened the
credibility of our services. The HKQAA holds many accreditations for auditing Quality,
Environmental, Occupational Health & Safety, and Information Security management
systems, including accreditations from UKAS (UK), HKAS (Hong Kong) and CNAS (China).
For ethical auditing, we are accredited by SAAS for SA 8000, which is recognised by BSCI
and WRAP, among others, and we are approved for social auditing by Tesco (UK).
With over 4,000 certificates spanning various industries and accounting for more than 50% of
the market share, the HKQAA is a leading CAB in Hong Kong, serving client organisations in
Hong Kong, China, and other Asian countries. The headquarters of the HKQAA is located in
Hong Kong. We also have offices in Beijing, Guangzhou, Shanghai and Suzhou, as well as a
representative office in the United States.
The Agency has been an advocate for promoting environmental management, sustainability
and corporate social responsibility (CSR) over the past decade. A few years ago, we started
to provide professional verification services for carbon emissions for major public utilities in
Hong Kong. We also invited the Global Reporting Initiatives (GRI) and the Chairman of ISO
Working Group of ISO 26000, Dr Jorge E. R. Cajazeira, to Hong Kong to bring in the latest
information about the international development of sustainability and CSR.
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1.2 About The Hongkong and Shanghai Banking Corporation Limited (HSBC)
The Hongkong and Shanghai Banking Corporation Limited is a founding and a principal
member of the HSBC Group which, with around 8,000 offices in 87 countries and territories
and assets of US$2,418 billion as of 30 June 2010, is one of the world’s largest banking and
financial services organisations.
The importance of running a sustainable business for the long term has been highlighted by
the global financial crisis. At HSBC, a sustainable business means achieving profits for its
shareholders, underpinned by good governance, long-lasting customer relationships, and
highly committed staff delivering the corporate strategy and managing the social and
environmental impact of the business.
The partnership with the HKQAA in developing the HKQAA - HSBC CSR Index is another
important demonstration of HSBC’s commitment to promoting better corporate and
organisational sustainability in the society.
1.3 About ISO 26000 Guidance on Social Responsibility
ISO 26000 Guidance on Social Responsibility is an international standard developed by the
ISO Technical Management Board Working Group on Social Responsibility. Experts from
more than 90 countries and 40 international or broadly-based regional organisations have
contributed to developing this new international standard. The ISO 26000 was officially
released as an International Standard on 1 November 2010. This international standard
provides complete guidance for all types of organisations on the understanding and
implementation of important issues related to social responsibility. There are seven core
subjects, namely, organisational governance, human rights, labour practices, the
environment, fair operating practices, consumer issues and community involvement and
development.
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1.4 Latest Trend in Social Responsibility
Under the trend of globalisation, there is an increasing concern about the responsibility for
labour practices, environmental, consumer and other public issues. Organisations, including
private companies, government and non-government organisations need to be more aware
of their impact on the whole society, since their stakeholders are very much concerned about
their performance towards society and the environment. After the economic crisis in 2008, the
measurement of organisational performance is no longer confined to their profitability, but
also to their commitment and implementation of various principles of social responsibility,
such as transparency, accountability, ethical behaviour, respect for stakeholder interests,
respect for the rule of law and respect for human rights. Economic, social and environmental
performance are the three bottom lines and metrics used to measure the organisation’s ability
to continue operating successfully.
As quoted by Ms Vivian Lau, Deputy Director-General of Trade and Industry, at the HKQAA
Symposium 2008, “The launching of the CSR Index in today’s Symposium is most timely, as
CSR becomes a growing concern of local and overseas buyers and brands. In creating
economic prosperity, enterprises increasingly need to rethink their social responsibility
alongside their business activities. This CSR Index, should I say, is instrumental in enhancing
the competitiveness of Hong Kong enterprises.”
The social responsibility performance has become a major factor influencing an
organisation’s reputation, as well as its ability to attract and retain staff members, customers
and investors.
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1.5 The Initiation of the HKQAA - HSBC CSR Index
Bearing the mission of enhancing Hong Kong organisations’ competitiveness and
commitment towards sustainability, the HKQAA cooperates with HSBC to launch the Index.
As stated by Dr Jorge E. R. Cajazeira, Chairman of ISO WG on Social Responsibility,
regarding the launching of the HKQAA - HSBC CSR Index, “I was very impressed by the joint
HKQAA - HSBC initiative for the CSR Index. I believe that the application of this methodology
will help promote the principles and guidelines of the future ISO 26000 standards, without
violating the intent of the standards that it should not be used for certification purposes”. The
index aims to establish a level playing field for promoting the application of ISO 26000. It is
designed with reference to the ISO 26000 Guidance on Social Responsibility in order to help
organisations enhance their CSR performance. We believe that this project is able to benefit
various stakeholders in our society.
The HKQAA - HSBC CSR Index consists of two series of Indices, namely, the Hong Kong
CSR Advocate Index and the Hong Kong 100 CSR Index. 2009 is the base year for future
analysis.
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Part Two
The HKQAA - HSBC CSR Index – Hong Kong CSR Advocate Index
2.1 The Hong Kong CSR Advocate Index
The Hong Kong CSR Advocate Index is an annual voluntary benchmarking project. It aims to
promote the application of the ISO 26000:2010 Guidance and help the participating
organisations determine their CSR system maturity. With reference to ISO 26000:2010, a set
of CSR practices and scoring criteria were developed to measure the organisations’ system
maturity in CSR performance. For reasons of confidentiality, scoring of the participating
organisations will not be presented to the general public. Nevertheless, the HKQAA is
pleased to share the conclusive analysis of 2011 about the CSR core subjects, as well as a
comparison between private and public listed organisations and a benchmarking of the
manufacturing, service and construction sectors in this report.
2.2 The Forty-Five 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 forty-five recommended CSR practices under seven core subjects as
shown below:
CSR Core Subjects
Recommended CSR Practices
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.
Organisational Governance
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.
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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.
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.
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.
Human Rights
HR5 Organisation should ensure no engagement with forced labour or child labour.
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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.
Labour Practices
LP6 Organisation should implement programmes to increase the capacity and employability of employees.
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.
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, etc. 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.
The
Environment
EN4.3 Organisation should establish criteria for effective operation and maintenance of significant energy use.
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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.
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.
Fair
Operating
Practices
FO4 Organisation should develop and implement programmes to protect property rights.
CI1 Organisation should ensure no unfair or misleading marketing and information is delivered to customers or consumers.
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.
Consumer
Issues
CI5 Organisation should review complaints and take action to prevent recurrence.
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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.
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.
Community
Involvement
and
Development
CID5 Organisation should contribute to the development of the community in which they operate.
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2.3 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 forty-five CSR
practices based on the defined scoring criteria*. The detailed scoring criteria of the forty-five
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.
All Rights Reserved Page 23 of 62
4 – Confirming 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. 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
Organisation has established programmes or control measures to realise the recommended practice. The programme or control measures have been fully implemented with advance planning. 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 “round down” averages (to
two significant figures) of the participating organisations.
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2.4 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.
2.5 Information Security and Confidentiality
All of the information collected in the verification exercise, including the agreed scores of
those 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.
2.6 Quality Assurance
Internal quality assurance procedures were implemented to ensure quality of the verification,
research and analysis processes.
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2.7 Participating Organisations
Twenty-three organisations including educational institutions, government departments,
private and public listed companies from the manufacturing, construction and service sectors
participated in the programme in 2011, namely:
- Alliance Construction Materials Limited
- Amoy Food Limited
- Analogue Group of Companies
- Cafe De Coral Holdings Limited
- Canon Hong Kong Company Limited
- Chun Lee Engineering Co. Ltd
- Driltech Ground Engineering Limited
- EGL Tours Company Limited
- Fuji Xerox (Hong Kong) Limited
- Hang Seng School of Commerce and Hang
Seng Management Colleague Limited
- Housing Department
- Jumbo Orient Contracting Limited
- Leo Paper Group (Hong Kong) Ltd
- Modern Terminals Limited
- MSDI Limited
- MTR Corporation Limited
- SOCAM Development
- Shun Yuen Construction Company Limited
- The Link Management Limited
- The Marketing Store Worldwide (Asia)
Limited
- Tim Lee Construction Company Limited
- Tong Kee Engineering Limited
- Tsuen Lee Metals and Plastics Toys
Company Limited
Distribution of the Participating Organisations
The participating organisations comprise 16
private companies, five public listed
companies (or their subsidiary companies)
and two government departments or
educational institutions.
Out of the 23 participating organisations, nine
companies are from the Service Sector, eight
companies from the Construction or
Engineering Services Sector, four from the
Manufacturing Sector, one of them is an
Education Provider and one of them is a
Government Department.
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2.8 Summary and Recommendations
2.8.1 Seven Core Subjects and the Trends
Labour Practices
Labour Practices has been the best performing indicator in the 2011 Index.
Participating organisations in general
were showing great concern for labour
needs, such as occupational health and
safety, staff training and development,
labour relations, etc. The participating organisations had high
awareness of the Minimum Wage Law
which has been a legal requirement in
Hong Kong since 1 May 2011. In
response to legal requirements, some
participating organisations conducted
engagement meetings with their staff
members to discuss the new wage and
salary arrangements. Meetings with
vendors, suppliers and sub-contractors
were arranged by the participating
organisations to communicate the
Minimum Wage Law.
Some of the participating organisations carried out measures to ensure compliance with the
Minimum Wage Law including the development of a Code of Conduct for suppliers and
sub-contractors. Furthermore, skill-enhancing and learning programmes were given to staff
members by the participating organisations.
4.96
5.00
4.83
4.83
4.87
4.74
4.96
4.69
4.81
4.81
4.81
4.52
4.76
4.68
4.72
4.68
4.92
4.44
3.0 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
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Human Rights
Well-established systems are in place to
prevent engagement of child labour or
forced labour. Some of the participating
organisations provide working
opportunities for vulnerable groups and
minorities. Various communication
channels with stakeholders regarding
human rights issues were established by
the participating organisations.
Similar to previous years, the participating
organisations were well aware of the
discrimination issues. However, systematic
risk assessment for evaluating the
potential impact of abuse of human rights
resulting from supply chain performance
was not generally conducted.
Consumer Issues
Despite the fact that scores of this
indicator decreased when compared to
2010, continuous effort has been exerted
by the participating organisations to
address consumers’ need. Participating
organisations deployed extensive
resources for the development of
innovative products introducing the use of
socially- and environmentally-beneficial
materials and adoption of cleaner and
greener production methods. Participating
organisations are actively enhancing
consumer awareness of sustainable
consumption by providing instructions and
education to consumers.
Among the participating organisations,
establishing an ISO 9001 certified quality
management system seemingly is an
effective tool for ensuring customer satisfaction and managing complaints. In practical
operation, the participating organisations enhanced customer satisfaction by means of
implementing complaint handling procedures, improving product testing and quality control
procedures, developing regular customer engagement meetings, etc.
4.91
4.74
4.78
4.65
3.87
4.93
4.67
4.85
4.81
4.41
4.84
4.44
4.88
4.64
4.44
3.0 3.5 4.0 4.5 5.0
HR5
HR4
HR3
HR2
HR1
Average Score for
Human Rights
Average score in 2009
Average score in 2010
Average score in 2011
4.70
4.61
4.83
4.96
4.78
4.87
4.91
4.74
4.69
4.70
4.81
4.96
4.74
4.78
4.85
4.81
4.28
4.72
4.80
4.96
4.30
4.57
4.64
4.60
3.0 3.5 4.0 4.5 5.0
CI8
CI7
CI6
CI5
CI4
CI3
CI2
CI1
Average Score for
Consumer Issues
Average score in 2009
Average score in 2010
Average score in 2011
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Fair Operating Practices
This year, more participating organisations
were sourcing fair trade products, raw
materials and engaging accredited fair trade
companies and social enterprises.
Meanwhile, participating organisations
continue to implement programmes to
pursue corruption prevention and protection
of property rights.
Compared to the results of previous years,
more participating organisations were
aware of the issues of fair competition.
Some of them employed legal consultants
to evaluate the organisation’s existing
operating practices in order to prevent their
engagement in anti-competitive behaviour.
Some have established plans to prepare for
the upcoming Competition Law. Some
participating organisations incorporated
social, ethical, environmental and gender equality criteria in supplier and contractor contracts.
The Environment
Most of the participating organisations have
implemented environmental management
systems in accordance with the ISO 14001
requirements so as to manage
environmental issues systematically.
Programmes, guidelines, policies and
systems were developed to minimise waste,
reduce resource consumption and prevent
pollution.
Some organisations implemented
campaigns and measures to enhance
energy performance and reduction of
greenhouse gases. Some also conducted
surveys to gather stakeholder feedback
with respect to their environmental
performance. Internal training programmes
on “Green Offices” were arranged by some
participating organisations. However, a systematic approach to managing greenhouse gas
emissions was not found to be widely adopted in 2011.
4.61
4.35
4.35
4.83
4.59
4.19
4.58
4.61
4.64
4.08
4.00
4.44
3.0 3.5 4.0 4.5 5.0
FOP4
FOP3
FOP2
FOP1
Average Score for
Fair Operating Practices
Average score in 2009
Average score in 2010
Average score in 2011
4.70
4.04
4.30
4.35
4.78
4.43
3.96
4.56
4.54
4.70
4.09
3.80
4.48
4.56
4.80
3.0 3.5 4.0 4.5 5.0
EN5
EN4
EN3
EN2
EN1
Average Score for
The Environment
Average score in 2009
Average score in 2010
Average score in 2011
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Organisational Governance
The performance of this core subject
has been maintained steadily. Social
responsibility has become an integral
part of the participating organisations’
policies, strategies and operations.
Systematic procedures are in place to
govern the business operations in
almost all participating organisations.
Two-way stakeholder communication
mechanisms were well-developed and
exercised. However, not all
organisations have a practice of
disclosing their CSR policies and
performance. Governance structures,
including CSR steering committees for
the execution of CSR awareness
programmes, were formed in most of
the participating organisations.
The participating organisations
continue to scrutinise the compliance
status of the applicable laws and
regulations, as well as relevant international norms. Codes of conduct or ethics and staff
manuals were developed in which organisations’ standards are defined.
Nevertheless, similar to last year, structural CSR training programmes were not apparent in
most of the participating organisations. Disclosure of organisations’ policies, decisions and
activities for which they are accountable, including the known and likely impacts on the
society and environment, as yet still has room for improvement.
4.78
4.61
4.70
4.39
4.78
4.43
4.57
4.85
4.44
4.56
4.41
4.63
4.37
4.63
4.72
4.56
4.52
4.16
4.72
4.20
4.76
3.0 3.5 4.0 4.5 5.0
OG7
OG6
OG5
OG4
OG3
OG2
OG1
Average Score for
Organisational Governance
Average score in 2009
Average score in 2010
Average score in 2011
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Community Involvement and Development
The participating organisations have
shown continuous efforts in supporting the
community and volunteerism. Philanthropy
is the common approach towards
community development. Programmes
were implemented by the participating
organisations to provide care and
assistance to the vulnerable groups.
Promotion of healthy lifestyles is being
emphasised by most of the participating
organisations.
Heritage conservation and community
skills development are the areas that can
be further strengthened. Some
participating organisations committed to
infrastructure development in the areas where they operate. Donations and fund-raising
activities were also noticed among the participating organisations.
2.8.2 Comparing Private and Public Listed Companies
Similar to the results of 2009 and 2010,
among the participating organisations,
CSR performance of the public-listed
companies is relatively more mature than
that of the private companies, particularly
in aspects related to Organisational
Governance, Fair Operating Practices,
The Environment and Community
Involvement and Development. It is
explanatory that the notion of CSR has
been well-addressed in the public-listed
companies over many years.
Moreover, the maturity of the practices
related to Human Rights, Labour Practices
and Consumer Issues are comparable.
4.61
4.52
4.39
4.74
4.22
4.56
4.74
4.48
4.74
4.44
4.36
4.56
4.32
4.6
4.17
3.0 3.5 4.0 4.5 5.0
CID5
CID4
CID3
CID2
CID1
Average Score for Community
Involvement and Development
Average score in 2009
Average score in 2010
Average score in 2011
4.90
4.84
4.69
4.60
4.83
4.70
4.93
4.4
4.8
4.53
4.38
4.86
4.53
4.49
3.0 3.5 4.0 4.5 5.0
Community Involvement
and Development
Consumer Issues
Fair Operating Practices
The Environment
Labour Practices
Human Rights
Organisational
Governance
Average Score of CSR Seven Core Subjects
for Private and Public Listed Companies
Private Companies - Average Score in 2011
Public Listed Companies - Average Score in 2011
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2.8.3 Comparing the Manufacturing, Service and Construction Sectors
As indicated, participating organisations
from the Manufacturing Sector attained
higher maturity levels than the other
sectors in 2011.
The average scores of the Manufacturing
and Service Sectors are very similar. The
participating organisations from the
Manufacturing Sector on average scored
highest in six core subjects except
Organisational Governance while
participating organisations from the
Construction Sector appeared the least
mature. In particular were the average
scores of Consumer Issues, Labour
Practices, Organisational Governance and
Fair Operating Practices.
2.8.4 Highest Average Score Identified in Particular CSR Practices
Most of the CSR practices under the
scope of Labour Practices and Consumer
Issues achieved a mature level. All
participating organisations were
successfully promoting an occupational
health and safety culture within the
organisation and contractors. Similar to
the results of 2010, the participating
organisations are mature in addressing
customer complaints and taking positive
actions to prevent a recurrence. They
demonstrated mature mechanisms in
preventing child labour or forced labour
and executing programmes to increase
the capacity and employability of
employees.
More participating organisations are deploying resources to ensure their products and
services will not be inherently harmful to consumers' health, and to inform consumers about
their rights and responsibilities when products and services are delivered.
4.91
4.91
4.96
4.96
5.00
3.0 3.5 4.0 4.5 5.0
(HR5) Organisation should ensure no engagement
with forced labour and child labour.
(CO2) Organisation should ensure that consumers are
aware of their rights and responsibilities when
products and services are delivered.
(LP6) Organisation should implement programme to
increase the capacity and employability of
employees.
(CO5) Organisation should review complaints and
take action to prevent recurrence.
(LP5) Organisation should promote the occupational
health and safety culture to employees and
subcontractors.
Highest Average Score Identified
in Particular CSR Practices
Average Score of
CSR Seven Core Subjects
4.43
4.50
4.53
4.59
4.61
4.80
4.87
4.44
4.59
4.50
4.73
4.56
4.79
4.77
4.35
4.40
4.29
4.65
4.52
4.61
4.70
3.00 3.50 4.00 4.50 5.00
The Environment
Community
Involvement and
Development
Fair Operating
Practices
Human Rights
Organisational
Governance
Consumer Issues
Labour Practices
Average score in 2009
Average score in 2010
Average score in 2011
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2.8.5 Lowest Average Score Identified in Particular CSR Practices
The performance of Community
Involvement and Development is
comparatively less mature than other
core subjects in 2011, particularly in
areas related to conservation and
heritage protection and skill
development in the supply chain.
Reducing greenhouse gas emissions is
also relatively less mature among the 45
practices of the Index. As this is
seemingly one of the most critical issues
around the world, further enhancement
has become imperative. Preventing the
potential for abuse of human rights
resulting from the performance of the
supply chain should also be addressed
to a higher degree.
3.87
4.04
4.22
4.30
4.35
4.35
4.35
3.0 3.5 4.0 4.5 5.0
(HR1) Organisation should prevent the potential for
abuse of human rights resulting from the actions of
others entities or persons whose activities are
significantly linked to those of the organisation.
(EN4) Organisation should implement measures to
reduce greenhouse gases (GHG) emissions associated
with its activities, products and services.
(CID1) Organisation should help conserve and protect
heritage, especially where the organisation's operations
have an impact on it.
(EN3) Organisation should implement resource
efficiency measures to reduce its use of energy, water
and other materials.
(EN2) Organisation should promote the environmental
caring culture to employees and subcontractors.
(FOP2) Organisation should prevent engaging in anti-
competitive behaviour.
(FOP3) Organisation should incorporate social, ethical,
environmental and gender equality criteria, in its
purchasing, distribution and contracting policies.
Lowest Average Score Identified
in Particular CSR Practices
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2.8.6 Organisational Governance
Organisational Governance
81
73
31
83
51
71
1931
14
13
19
12
17
15
1 2 3 4 5 6
Score
Organisation should set its direction by making social responsibility an integral partof its policies, strategies and operations.
Organisation should establish programs to raise awareness and build competencyin social responsibility in the organization.
Organisation should be aware of applicable laws and regulations, as well asinforming those within the organization responsible for observing these laws andregulations to ensure that they are observed.
Organisation should disclose its policies, decisions and activities about theirknown and likely impacts on society and the environment.
Organisation should define its standards of ethical behavior with reference toavailable international norms.
Organisation should develop governance structures that help to promote ethicalconduct within the organization and in its interactions with others.
Organisation should establish a two-way communication mechanism overstakeholders’ interests, as well as assisting in identifying areas of agreement anddisagreement and in negotiation to resolve possible conflicts.
Number of participated organizations in each cluster
The participating organisations in general were aware of the potential CSR impacts that
would affect their business performance. Most of them have taken steps to address
applicable laws and regulations and communicate with those who are responsible for
observing these laws and regulations so as to ensure compliance. Similar to 2009 and
2010, many of the participating organisations established a two-way communication
process with their stakeholders.
The maturity of all participating organisations reached at least the implementation phase
(score 3). Some participating organisations were increasing their pace moving forward by
establishing programmes for raising awareness and building competency for social
responsibility in the organisation. They were also committed to disclosing the
organisation’s policies, decisions and activities for which it is responsible, including the
known and likely impacts on society and the environment.
Good Practices Observed
Some organisations developed Corporate Social Responsibility guidelines and
handbooks for their staff. A CSR Committee was formed and conducted regular reviews
of the organisations’ CSR performance. Items such as compliance of law, achievement of
CSR objectives, etc. were reviewed during management meetings. Systematic risk
management processes were developed in some participating organisations to facilitate
evaluation of the impact of particular issues including prevention of forced labour,
occupational health and safety, complaint handling procedures, community investment,
etc. Most of the participating organisations seek continuous improvement opportunities
by conducting self-assessments and attaining external awards or certifications such as
ISO9001, ISO14000, etc..
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2.8.7 Human Rights
Human Rights
3146
1661
1931
1841
212
1 2 3 4 5 6
Score
Organisation should prevent the abuse of human rights resulting from theactions of any entities or persons whose activities are significantly linked tothose of the organization.
Organisation should establish a transparent and independent governancestructure to ensure that no party can interfere with the fair conduct of aparticular grievance process.
Organisation should provide stakeholders with channels to freely express theirviews, even in situations of disagreement with organizational decisions.
Organisation should ensure that it does not discriminate against employees,partners, customers, stakeholders, members and anyone else that theorganization has any contact with or can influence.
Organisation should ensure no engagement with forced labor and child labor.
As revealed by the analysis, almost all of the participating organisations were
endeavouring to avoid engagement of forced labour and child labour in their businesses.
Most of them have been providing stakeholders with channels to freely express their
views even in situations where disagreement with organisational decisions occurred.
The average scores in this issue are comparatively higher. This may be due to the
stringent legal system in Hong Kong in such regards. Companies in Hong Kong tend to
be law-complying. However, systematic risk assessment for evaluating the potential
impact on abuse of human rights resulting from supply chain performance was not
generally conducted.
Good Practices Observed
Few organisations performed systematic risk analysis of human rights impact on their
operations as a whole (including the activities in the supply chain). Well-established
systems were in place to prevent engagement of child labour or forced labour. Some of
the participating organisations provide working opportunities to the vulnerable groups and
minorities by outsourcing the production works to these groups. Various communication
channels with stakeholders regarding human rights issues were widely established.
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2.8.8 Labour Practices
Labour Practices
41
3
21
21
221
18
20
20
20
23
1 2 3 4 5 6
Score
Organisation should encourage the organizations in its supply chain tomeet labor legal requirement.
Organisation should ensure that the conditions of its work comply withnational laws and regulations.
Organisation should establish dialogue with staff members toestablish healthy labor-management relations.
Organisation should implement measures to protect employees fromhealth risks and adapt an occupational environment that meets thephysiological and psychological needs of employees.
Organisation should promote an occupational health and safetyculture to employees and contractors.
Organisation should implement programs to increase the capacity andemployability of employees.
Most of the organisations are equipped with a well-structured system for managing
issues related to Labour Practices. All of the participating organisations are actively
promoting an occupational health and safety culture to employees and contractors. Many
of them have implemented programmes to increase the capacity and employability of
employees. Participating organisations maintained continuous dialogue with staff
members for establishing a healthy labour-management relationship.
In 2011, participating organisations are paying more attention to the conditions of work to
ensure compliance with national laws and regulations. One of the reasons is that a
Minimum Wage Law has been in effect in Hong Kong since 1 May 2011. However, similar
to previous years, supply chain management is still an area that has room for further
enhancement.
Good Practices Observed
In response to legal requirements, some of the participating organisations conducted
engagement meetings with their staff members to discuss the new wage and salary
arrangements. Meetings with vendors, suppliers and sub-contractors were arranged by
the participating organisations to communicate the Minimum Wage Law and to ensure its
implementation. Some of the participating organisations carried out measures to ensure
compliance with the Minimum Wage Law including the development of a Code of
Conduct for suppliers and contractors. In addition, skill-enhancing and learning
programmes were provided to staff by the participating organisations.
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2.8.9 The Environment
The Environment
185
815
716
9833
1751
1 2 3 4 5 6
Score
Organisation should implement measures to prevent pollution andminimize waste.
Organisation should promote an environmental-caring culture toemployees and contractors.
Organisation should implement resource efficiency measures to reduce itsuse of energy, water and other materials.
Organisation should implement measures to reduce Greenhouse Gases(GHG) emissions associated with its activities, products and services.
Organisation should identify potential adverse impacts on the ecosystemand take measures to eliminate or minimize these impacts.
It has been observed that the environment has become a major topic in corporate
policies and strategies. More participating organisations implement campaigns and
measures to encourage energy savings as well as reduce the emission of greenhouse
gases. Some of them conducted surveys to gather stakeholder feedback on
organisations and arrange internal training programmes on “Green Offices”.
However, greenhouse gas reduction needs more attention, though more participating
organisations have conducted carbon and energy audits to quantify the amount of carbon
emissions. The performance is unsatisfactory as there are only a few organisations in the
Forming and Implementing Phases (Score 2 and 3 respectively). The promotion of an
environmental culture is also being enthusiastically addressed by the participating
organisations. Many of the participating organisations implement measures to prevent
pollution and minimise waste, such as promoting an environmental caring culture to
employees and subcontractors.
Good Practices Observed
To reduce fuel and energy consumption and GHG emissions, some organisations
develop a “Green Technology Model”, which is a green terminal guideline, to consolidate
the experience of energy saving and environmental protection and establish internal
references for newly developed projects. In order to enhance public awareness of
environmental issues, some of the participating organisations launched educational
programmes such as design competitions and quiz shows. They also conducted regular
surveys to gather the views of internal stakeholders on environmental protection.
Organisations have been influencing clients by reducing packaging or using sustainable
resources for packaging.
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2.8.10 Fair Operating Practices
Note: This practice is not applicable to some participating organisations, so the average score is calculated with a base less than 23
The performance of property rights protection and corruption prevention are relatively
less mature. Similar to the previous year, some of the organisations established precise
procedures, defined guidelines and issued codes of conduct to address these aspects.
However, the monitoring process for implementation of those procedures and guidelines
still has room for reinforcement.
As indicated in the trend, more participating organisations incorporated social, ethical,
environmental and gender equality criteria in their purchasing, distribution and
contracting policies. However, more efforts will be required to raise the awareness
regarding supply chain management as it has become more discerning.
Comparatively, prevention of anti-competitive behaviour is also less mature. However, it
is anticipated that more organisations will address this issue when the Competition Law is
in force. The awareness of preventing engagement in anti-competitive behaviour for
internal and external stakeholders can be further enhanced. In addition, participating
organisations should develop and implement programmes for protection of property
rights.
Good Practices Observed
Some of the participating organisations employed legal consultants to evaluate the
organisation’s existing operating practices in order to prevent engaging in
anti-competitive behaviour. Sourcing of fair trade products, raw materials and engaging
accredited fair trade companies and social enterprises were practiced by some
participating organisations. Meanwhile, participating organisations continue to implement
programmes to pursue corruption prevention and protection of property rights.
Fair Operating Practices
2021
1381
9131
1571
1 2 3 4 5 6
Score
Organisation should develop and implement programs to preventcorruption.
Organisation should prevent engaging in anti-competitive behavior.
Organisation should incorporate social, ethical, environmental and genderequality criteria in its purchasing, distributing and contracting policies.
Organisation should develop and implement programs to protect propertyrights.
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2.8.11 Consumer Issues
Consumer Issues
1
2
3
31
1
21
52
51
21
21
20
19
22
20
16
17
1 2 3 4 5 6
Score
Organisation should ensure no unfair or misleading marketing and information isdelivered to customers or consumers.
Organisation should ensure that consumers are aware of their rights andresponsibilities when products and services are delivered.
Organisation should ensure that its products and services will not be inherentlyharmful to consumers' health.
Organisation shall provide customers with socially and environmentally beneficialproducts and services that are able to reduce respective adverse impactsthroughout their life cycle.
Organisation should review complaints and take action to prevent recurrence.
Organisation should implement measures to resolve dispute and enhancecustomer satisfaction.
Organisation should implement measures to protect consumers’ data andprivacy.
Organisation should educate customers or consumers in order to enhance theirunderstanding of the product and awareness of sustainable consumption.
Note: This practice is not applicable to some participating organisations, so the average score is calculated with a base less than 23
Consumer Issues is one of the most mature subjects among the seven core subjects. It
demonstrates that the participating organisations are thoroughly addressing the
expectations and needs of their customers / clients. Improvement in performance was
shown.
Similar to previous years, addressing the expectations and needs of consumers has
always been a major focus of those participating organisations. Participating
organisations exerted extensive efforts on the development of innovative products
introducing the use of socially- and environmentally-beneficial materials and adopting
greener and cleaner production methods. More participating organisations are deploying
resources to ensure their products and services will not be inherently harmful to
consumers' health.
In addition, participating organisations are actively enhancing consumer awareness of
sustainable consumption by providing instructions and education to consumers. Among
those participating organisations, establishing an ISO 9001 certified quality management
system seemingly is an effective tool for ensuring customer satisfaction and managing
complaints. In practical operation, the participating organisations enhance customer
satisfaction by means of implementing complaint handling procedures, improving product
testing and quality control procedures and developing regular customer engagement
meetings, etc. However, measures to protect consumer data and privacy can be further
enhanced.
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Good Practices Observed
Some of the participating organisations developed comprehensive quality control
systems. Data analysis has been conducted proactively with the aim of identifying
improvement opportunities. Mystery shopper schemes have been implemented to
maintain the service quality. Most of the manufacturing companies considered end users’
comfort as one of the major concerns in production, for instance, voluntarily providing
environmentally-friendly materials for customers.
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2.8.12 Community Involvement and Development
Community Involvement and Development
13442
1841
16411
15611
17411
1 2 3 4 5 6
Score
Organisation should help to conserve and protectheritage, especially where the organization's operationhas an impact on.
Organisation should contribute to programs that provideassistance or other necessities to vulnerable and low-income groups.
Organisation should participate in skills development forthe organizations in its supply chain of the community inwhich they operate.
Organisation should encourage healthy lifestyles in thecommunity.
Organisation should contribute to the development of thecommunity in which they operate.
Note: This practice is not applicable to some participating organisations, so the average score is calculated with a base less than 23
The overall result of this subject in 2011 indicates a downward trend. In general, the
participating organisations have shown continuous efforts in supporting the community
and volunteerism. Philanthropy is a common practice towards community development.
Vulnerable group assistance and caring programmes were in place. Promotion of healthy
lifestyles was being emphasised by most of the participating organisations.
Heritage conservation and community skills development are the areas which can be
further strengthened. As heritage conservation and protection is a broad issue ranging
from natural heritage, cultural heritage, tradition and inheritance to heredity, it is
worthwhile for participating organisations to actively address this respect so as to
contribute to the sustainable development of our society. Some participating
organisations committed to infrastructure development in the countries where they
operate.
Good Practices Observed
Some participating organisations supported the development of infrastructure for the
community where they operate. Some examples of good practices observed from the
participating organisations were providing child-care services and tutorial classes for staff
members; food donations to support local food banks and organising campaigns on a
regular basis to promote reduction of food waste; skills development for heritage
preservation and facilitated training for local workers, including those from contractors
and internal staff to equip them with knowledge in heritage preservation and protection;
active involvement in experience sharing and conducting research; and development
work relating to heritage preservation, etc.
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2.8.13 Carbon and Energy Management Advocate Sub-Index
Carbon & Energy Management Advocate Sub-Index
154211
12731
17321
15431
10652
0 1 2 3 4 5 6
Score
Organization should demonstrate its commitment via policy, strategy,improvement objectives & targets, resources allocation, etc. to support theenergy management system and to continually improve its effectiveness.
Organization should develop record and maintain an energy review andestablish an energy baseline.
Organization should establish criteria for effective operation andmaintenance of significant energy uses.
Organization should consider energy performance improvementopportunities in the design of new, modified and renovated facilities,equipment, systems and processes, and support the purchase of energyefficient products and services.
Organization should implement measures to reduce Greenhouse Gases(GHG) emissions associated with its activities, products and services.
Note: This practice is not applicable to some participating organisations, so the average score is calculated with a base less than 23
The overall average score of the Carbon and Energy Management Sub-Index is 4.29 out of 5.
Most of the participating organisations performed maturely in The Environment, however, the
overall performance of the Carbon and Energy Management Advocate Sub-Index is
comparatively less mature and the maturity level varies from organisation to organisation.
Most of the participating organisations established criteria for effective operations and
maintenance of significant energy use; 22 out of 23 organisations have conducted energy
reviews to measure the energy use of their operation processes. Most of the participating
organisations consider energy performance improvement opportunities while developing new
projects. Some of them are planning for Carbon Audits, assessments or certification such as
ISO14000 and ISO50001 in order to enhance energy performance.
Some of the participating organisations demonstrated their commitment via established
policy, strategy, improvement objectives and targets, resource allocation, etc. to support the
energy management systems and to continually improve effectiveness. However, coverage
of energy sources can be further extended and it is recommended that an energy baseline
can be defined for future comparison.
Though the majority of participating organisations have implemented measures to reduce
Greenhouse Gas (GHG) emissions associated with their activities, products and services out
of their management commitment to foster a greener and cleaner environment, less than half
of them have taken reviews of the implemented programmes for identifying improvement
areas.
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Part Three
HKQAA - HSBC CSR Index – Hong Kong 100 CSR Index
3.1 The Hong Kong 100 CSR Index
The Hong Kong 100 CSR Index is a research project regarding an organisation’s disclosure
of its CSR issues. One hundred organisations from fourteen industrial sectors in Hong Kong
were sampled for analysis. The CSR activities and behaviour of the Hong Kong organisations
will significantly affect the overall CSR image of the Hong Kong business sector.
The project aims to outline the CSR behaviour of Hong Kong organisations based on the
study of CSR disclosure made by the sampled organisations. Foreign investors and buyers
can make reference to the Hong Kong 100 CSR Index in their decision-making. With
reference to ISO 26000, a set of CSR indicators was developed to study and quantify CSR
disclosure by the selected organisations. The research is conducted on a yearly basis.
HKQAA is pleased to share the research results, including the CSR indicators, comparison
between private and public-listed companies and benchmarking of the fourteen sectors.
Organisations in Hong Kong can make use of this research to identify improvement
opportunities. This index can also facilitate future research with city-to-city comparisons.
3.2 CSR Disclosure Indicators
Based on the guidance and principles provided by ISO 26000, sixteen CSR Disclosure
Indicators are defined in the Hong Kong 100 CSR Index.
CSR Core Subjects CSR Disclosure Indicators
Integration of CSR in Organisational Policy
Disclosure of Social Performance
Disclosure of Environmental Performance
Corporate Governance Programme
Organisational
Governance
Stakeholder Engagement Programme
Human Rights Disclosure of Human Rights Issues
All Rights Reserved Page 43 of 62
Occupational Health and Safety Management Programme
Labour Practices Staff Development and Training
Pollution Prevention Programme
Sustainable Resources Usage Management Programme The Environment
Climate Change Mitigation Programme
Fair Operating Practices Promotion of CSR in the Sphere of Influence
Complaint and Dispute Handling Programme
Consumer Issues Consumer Education Programme
Support for Educational or Cultural Development Community Involvement
and Development Contribution to Community Development
3.3 Methodology
The research is based on the level of CSR disclosure made by the selected organisations,
which includes their websites, policies and reports, as well as other publicly available
information. A score of “1” will be assigned to the organisation if it has implemented activities
and practices in relation to a respective CSR Disclosure Indicator. On the contrary, a score of
“0” will be assigned if relevant information is not found in the information disclosed by the
organisation.
The proportion of “1” scores, which indicates the presence of relevant activities and practices,
out of the 16 indicators will form the Index. A fact-based scoring method was adopted.
Personal judgment on the effectiveness of the implemented CSR activities will not be
involved in the scoring process. By analysing the distribution of the CSR Disclosure Score,
we will be able to outline the CSR behaviour of Hong Kong organisations.
3.4 Information Security and Confidentiality
All of the information collected in the research will be kept in the HKQAA’s dedicated
database and the HKQAA will keep it strictly confidential. Proper information security
procedures are in place to protect the information of the participating organisations.
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3.5 Quality Assurance
Internal quality assurance procedures were implemented to ensure the quality of the research
and analysis process.
3.6 The 100 Selected Companies from 14 Industrial Sectors
One hundred companies were selected from 14 industrial sectors, including 55 publicly listed
companies, 33 private companies, 7 public bodies and 5 governmental departments. The
fourteen industrial sectors are:
- Catering
- Construction and Engineering
- Conglomerates
- Education
- Financial
- Government
- Manufacturing
- Property Development and Property Management **
- Public Bodies
- Public Services
- Retail
- Telecommunications
- Hotel and Tourism ***
- Trading and Logistics
* This sector was renamed from “Corporation” to “Conglomerate”
** This sector was renamed from “Property” to “Property Development and Property
Management”
*** This sector was renamed from “Tourism” to “Hotel and Tourism”
All Rights Reserved Page 45 of 62
3.7 Summary and Recommendations
Like last year, most organisations are
proactive in disclosing their social
performance, specifically their involvement
in the community. This indicator has the
highest score among the 16 indicators
again in 2011. Support and participation in
voluntary services and community
development are common for
organisations to demonstrate their CSR
commitment. Significant improvement has
also been found in the support for
educational and cultural development in
which the score has increased from 66 in
2010 to 84 in 2011. Meanwhile, these
organisations may consider enhancing
their disclosures about complaint and
dispute handling, consumer education and
human rights issues, which are ranked low
in this research. It is also worth noting that significant
improvement has been found in the
integration of CSR into organisational
policy and it has the highest score among the 16 indicators. It demonstrated that
organisations’ commitments to CSR and the awareness of CSR is increasing. Many of the
organisations have implemented corporate governance programmes to ensure sufficient
control over the operations.
More than 80% of the selected organisations have disclosed their staff development and
training programmes, particularly training that develops employee workplace skills. However,
higher transparency of the programmes for enhancing staff well-being, such as workplace
safety and healthy living, is recommended.
The organisations in general, have well-established environmental policies or have
implemented pollution prevention and recycling programmes. They have also paid more
attention to climate change and sustainable resource management. More
environmentally-friendly production practices were chosen and adopted when compared to
2009 and 2010.
However, achievements of these energy efficient programmes were not common.
Organisations are advised to establish energy management systems as a tool to facilitate
quantification and communication of their achievements on energy performance. Therefore,
organisations are advised to establish energy management policy as a tool to enhance
transparency and quantify their reduction target of carbon emissions.
22
40
49
61
64
64
64
70
76
77
77
84
84
85
87
87
34
57
52
70
68
60
63
65
86
69
72
66
80
82
89
77
21
49
49
73
63
60
51
56
77
73
69
62
82
72
86
67
0 20 40 60 80 100
Complaint and Dispute Handling Programme
Disclosure of Human Rights Issues
Consumer Education
Stakeholder Engagement Programme
Sustainable Resource Usage Management
Programme
Climate Change Mitigation Programme
Promotion of CSR in the Sphere of Influence
Occupational Health and Safety Management
Programme
Contribution to Community Development
Disclosure of Environmental Performance
Pollution Prevention Programme
Supporting Educational or Cultural Development
Corporate Governance Programme
Staff Development and Training
Disclosure of Social Performance
Integration of CSR in organisational policy
Average Score of Respective
CSR Disclosure Indicators
Average Score 2009
Average Score 2010
Average Score 2011
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It is noticeable that there is a significant difference between the maximum and minimum
scores in some sectors. One of the remarkable examples is the financial sector. The
difference between the maximum and minimum score is 75. This demonstrates that the
maturity level of CSR disclosure among these financial organisations varies significantly. It is
believed that for those organisations which scored low in the disclosure of CSR, they should
place more emphasis on it so as to allow the general public to understand their contribution to
the community.
3.8 Detailed Findings of Respective Sectors
Public Services and Education
“Leading sectors continue to reveal the highest transparency in their social responsibility programmes.”
As compared to last year, the average
score of Education remains unchanged.
The average score of Public Service
shows a small decrease. Most indicators,
such as Corporate Governance
Programme, Staff Development and
Training, etc. have remained more or
less stable.
In general, organisations in these two
sectors provide sufficient and updated
information about their CSR performance.
Some have a CSR or sustainability report
that periodically updates their social and
environmental performance through
different public channels.
Most organisations have exercised CSR
programmes, including staff development,
pollution prevention, occupational health
and safety management, disclosure of
social and environmental performance,
contribution to community development
and sustainable resource use. All
organisations have integrated CSR into their organisational policies and executed corporate
governance programmes.
Some organisations have implemented programmes to mitigate climate change. Typical
examples include a reduction of energy consumption and installation of energy-efficient
lighting.
43
49
58
59
63
66
66
68
71
73
73
79
83
89
40
56
52
53
58
63
60
74
78
70
68
81
89
88
33
36
50
45
48
60
54
72
68
66
66
79
87
89
0 20 40 60 80 100
Manufacturing
Construction & Engineering
Catering
Retail
Public Bodies
Property Development and Property
Management
Tourism and Hotels
Financial
Telecommunications
Government
Trading and Logistics
Conglomerates
Public Services
Education
Average Score of
Respective Sectors
Average Score 2009
Average Score 2010
Average Score 2011
All Rights Reserved Page 47 of 62
Although the organisations have provided information about their communication channels
with stakeholders in their reports or websites, the extent of said disclosure is limited and
mainly focused on their engagement activities with shareholders and staff. It is recommended
that such disclosures be extended to all key stakeholders and that organisations elaborate
more on how their engagement programmes affect their business operations. In addition, the
general public can find little information about complaint and dispute handling and human
rights issues. Organisations may consider improving the transparency on these issues.
Telecommunications
“Insufficient disclosure of Consumer Issues for most of the companies” This sector has the highest decline in
average scores among all 14 sectors.
Insufficient disclosure was found in
implementation of climate change
mitigation programmes, disclosure of
human rights issues, encouraging
stakeholder engagement, complaint and
dispute handling, and consumer education
programmes.
Some leading telecommunications
companies have disclosed in detail their
CSR strategies for formulating, managing
and promulgating their CSR policy and
initiatives at the corporate level.
Companies continue to disclose various
CSR programmes related to social and
environmental performance, contribution
to social and community development,
promotion of CSR in their sphere of
influence, sustainable resources use,
pollution prevention, and corporate
governance.
However, most of the companies are inactive in responding to climate change and
stakeholder engagement. Only a few of them have developed a set of communications
policies to gather stakeholder opinions, product feedback, etc.
Maximum and Minimum Score
31
38
0
31
38
38
25
38
69
44
63
81
44
19
63
69
81
81
81
88
88
94
94
94
94
94
94
94
0 20 40 60 80 100
Construction & Engineering
Catering
Manufacturing
Retail
Property Development and
Property Management
Hotel and Tourism
Public Bodies
Government
Public Services
Trading and Logistics
Conglomerates
Education
Telecommunications
Financial
Maximum Score
Minimum Score
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Financial
“Comprehensive disclosure of their social performance and corporate governance programme” Major financial institutions periodically release their CSR or sustainability reports with
detailed and comprehensive evaluations of their social and environmental performance.
However, only a few organisations have addressed their policies and procedures of
complaint and dispute handling, consumer education, disclosure of human rights issues and
stakeholder engagement programmes.
The majority of organisations continue to disclose CSR information related to social and
environmental performance, contributions to community development, promotion of CSR in
their sphere of influence, support for education and cultural development, pollution
prevention, climate change, staff development and training, corporate governance and
consumer education.
Government
“Disclosure of various environmental programmes are timely and sufficient.” Like last year, the government has released and updated their social and environmental
performances punctually and regularly. Most government departments have disclosed in
detail their programmes on environmental performance, climate change mitigation,
sustainable resource use, pollution prevention and staff training. Disclosure of their social
performance, promotion of CSR in the sphere of influence and occupational health and safety
were quite sufficient. However, detailed policies and procedures in complaint and dispute
handling are not commonly found. The government should place more emphasis on the
disclosure of human rights issues as it is a model for all organisations and corporations in
Hong Kong.
Trading and Logistics
“Disclosure of programmes of stakeholder engagement consumer education are yet to improve.”
The improvement in overall performance is encouraging. Organisations in general have
disclosed to a certain extent their support for charity, community services, waste reduction
and energy-saving programmes. Compared to last year, organisations have disclosed more
of their environmental and social performance, complaint and dispute handling, promotion of
CSR in their sphere of influence, occupational health and safety, and the integration of CSR
into organisational policies. However, only a few organisations have published and disclosed
the performance of their stakeholder engagement programmes and programmes concerning
consumer education.
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Property Development and Property Management
“Remarkable performance in the disclosure of Community Involvement and Development” All of the organisations have disclosed their performance for supporting education and
cultural development as well as their contributions to community development. Most
organisations have done well in the disclosure of their integration of CSR into organisational
policies, social performance, staff development and training, and contributions to community
developments. Programmes and disclosures about promotions of CSR in their sphere of
influence, stakeholder engagement and corporate governance are sufficient. However, their
transparency about complaint and dispute handling programmes and human rights requires
improvement.
Construction and Engineering
“Insufficient disclosure of engagement in Human Rights issues and Consumer Issues”
Though it is encouraging to see that organisations in the construction and engineering
sectors show substantial improvement in their disclosure of CSR programmes related to staff
development and training, as well as sustainable resource use, there is insufficient
information about promoting CSR in their sphere of influence, consumer education, complaint
and dispute handling, stakeholder engagement programmes and human rights issues, and
this poor performance has not changed since last year.
Most organisations have disclosed details of their programmes or policies concerning social
and environmental performance, occupational health and safety, contribution to and
participation in voluntary services and social investment, and pollution prevention.
Conglomerates
“Disclosures of environmental performance are solid and sufficient.” As compared to last year, the average score of the Conglomerates sector remains stable
and only a slight decline in the overall performance is found. Most indicators have remained
more or less stable. Most of the organisations have integrated CSR into their organisational
policies, disclosed their remarkable social performance and contributions to community
development, and executed corporate governance programmes.
In general, organisations in this sector are providing sufficient and updated information about
their CSR programmes, including staff development, occupational health and safety
management, pollution prevention, sustainable resource use, and disclosure of
environmental performance. Some have CSR or sustainability reports that periodically update
their social and environmental performance through different public channels. However,
insufficient disclosure of protecting consumer rights is found and more improvement should
be made as it has not improved since last year.
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Hotel and Tourism
“The disclosures of environmental performance are remarkable.” Improvement has been seen in most of the indicators. Organisations have been placing much
emphasis on disclosing their performance in all sectors except the disclosure of human rights
issues and corporate governance programmes. Significant improvement is found in the
protection of consumer rights and the environment. Social responsibility issues are
addressed and integrated into organisational policies at most of the organisations.
Outstanding performance has been maintained in the disclosure of social performance and
staff training and development.
Public Bodies “Organisations are active in disclosing their stakeholder engagement programmes.”
Although the overall performance is not the best among all 14 sectors, the degree of
improvement in the overall results is admirable. The average scores of most of the indicators
have been increasing. All of the organisations have disclosures of their stakeholder
engagement programmes. The disclosure of complaint and dispute handling, social
development programmes, staff development and training, corporate governance and the
integration of CSR into organisations’ policies are encouraging. However, their transparency
about climate change mitigation, sustainable resources use and occupational heath and
safety requires further improvement.
Retail
“Organisations are active in disclosing their environmental and social performance.” More organisations are eager to disclose their CSR programmes in relation to contributions to
education and cultural development, disclosure of environmental and social performance,
pollution prevention and sustainable resource use. Most of them have also released their
CSR policy, staff training and corporate governance programmes.
However, although the retail industry is one which has high degree of involvement of people
and services, the transparency in stakeholder engagement, human rights issues, sustainable
resource use, management programmes, and complaint and dispute handling programmes is
insufficient and improvement should be made in these areas.
All Rights Reserved Page 51 of 62
Catering
“Insufficient disclosure of programmes concerning climate change and complaint and dispute handling” There is improvement in the overall performance when comparing it to the record of last year.
Major catering organisations have done well in the support of and contribution to community
development as well as the disclosure of their social performance. In addition, they have
improved their disclosure of occupational health and safety, stakeholder engagement
programmes, and the integration of CSR into the organisations’ policies.
Some of them have also disclosed to some extent other CSR programmes and activities,
including pollution prevention, educational programmes for customers, staff development and
training and support for education and culture. The disclosure of human rights issues has
also improved. However, their transparency about climate change mitigation, complaint and
dispute handling programmes, promotion of CSR in their sphere of influence, sustainable
resource use, and corporate governance programmes requires improvement.
Manufacturing “Relatively high transparency in the disclosure of integration of CSR into organisational policy”
Organisations in the manufacturing sector have a slight improvement in most of the CSR
indicators. More organisations have disclosed their support for charity programmes and
community services, consumer education, sustainable resource use, pollution prevention,
occupational health and safety and corporate governance. Although an all-around integration
of CSR has been found in corporate policies in most of the organisations, they are seldom
disclosing their policies on human rights issues, stakeholder engagement and staff training
and development.
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Part Four
HKQAA-HSBC CSR Index – Research on Effectiveness of the CSR
Advocate Index
4.1 Research on Effectiveness of the CSR Advocate Index
The Research on Effectiveness of the CSR Advocate Index aims to find out how the
participation in the HKQAA - HSBC CSR Advocate Index can benefit the organisation. Out of
the 36 participating advocates in 2009 - 2010, we selected six from different backgrounds
(such as government body, private limited company, listed advocates and multinationals). All
of them have implemented measures of corporate social responsibility for 12 to 18 months
since their enrolment in the HKQAA - HSBC CSR Advocate Index.
The project allows the public to understand the benefits of participating in the HKQAA - HSBC
CSR Advocate Index, such as driving continuous improvement of advocates regarding the
CSR performance, brand building, etc.
The HKQAA is pleased to share the research results, including the benefits from participation
in the HKQAA - HSBC CSR Advocate Index for the six organisations and a summary of these
benefits. Organisations in Hong Kong can make use of this research for identifying the
potential benefits of joining the HKQAA - HSBC CSR Advocate Index.
4.2 Methodology
The research is based on the feedback from interview with the top management of the
selected advocates in regard to positive changes, influences, impacts and the gains they
have made after participating in the HKQAA - HSBC CSR Advocate Index.
All Rights Reserved Page 53 of 62
4.3 The 6 Selected Advocates from the 36 HKQAA - HSBC CSR Advocates
6 advocates were selected from the 36 CSR Advocates. The 6 chosen advocates are:
1. Alliance Construction Materials Limited
2. Fuji Xerox (Hong Kong) Limited
3. Housing Department
4. Tsuen Lee Metals and Plastics Toys Company Limited
5. Canon Hong Kong Company Limited
6. Leo Paper Group
4.4 Summary of Findings
For Organisational Governance, most advocates enhanced the corporate management tools
for their staff, including internal guidelines, policies and procedures for avoiding conflicts of
interest, anti-corruption, etc. and as a result reduced the risks to corporate governance. They
agree that corporate governance has become more systematic and the operational efficiency
has been improved along with the improvement of organisational governance. Channels for
mutual communications and feedback are improved while protection and management of
business confidentiality is also strengthened.
For Human Rights, one of the advocates indicated that it has effectively avoided sexual,
racial and all other kinds of discrimination in the workplace. The ability of staff to handle
disputes and issues involving minorities has also improved.
For Labour Practices, most of the advocates state that the staff turnover rate has been
dropping since the execution of CSR policies. There is an improvement of goodwill and in the
advocate’s reputation and it is reflected by an advantage gained in the recruitment of staff.
Staff morale, sense of belonging and sense of responsibility have significantly increased. Job
satisfaction of staff was enhanced resulting in an improvement in productivity.
For The Environment, almost all advocates have benefited from the reduction of energy costs
and carbon emissions. Some of the advocates agree that the sense of environmental
protection among workers has been improved and they are more aware of energy saving and
efficient use of resources in production. Some found that more new clients are attracted to
their products and services.
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For Fair Operating Practices, an advocate indicated that by developing a fair, open
competition platform for its vendors, suppliers and sub-contractors, it attracts more bids on its
contracts, and as a result lowers the overall costs of projects.
For Consumer Issues, advocates agree that participation in the HKQAA-HSBC CSR
Advocate Index and other kinds of CSR measures has brought a positive image and
enhanced the public’s understanding of the advocates’ efforts in CSR. For most of the
advocates, complaints about products and services from clients have decreased significantly,
customer satisfaction has been significantly improved, and the brand and reputation of the
advocate have improved.
For Community Involvement and Development, one of the advocates mentioned that the
efforts on environmental conservation work have drawn the attention of their staff, customers,
suppliers and the general public for environmental protection and natural species
conservation.
4.5 Detailed Findings of the Chosen Advocates
4.5.1 Alliance Construction Materials Limited
Being incorporated in 2004, Alliance Construction Materials Ltd (“Alliance”) offers
construction materials including concrete, asphalt, and aggregates, which are used in
concrete, asphalt, drainage, highway construction, and marine applications. Alliance is a joint
venture of Hanson plc and Cheung Kong Infrastructure Holdings Ltd. Alliance has been one
of the participants in the HKQAA - HSBC CSR Advocate Index since 2009.
The changes and gains it has experienced since participating in the HKQAA - HSBC CSR
Advocate Index are:
For Organisational Governance:
Alliance enhanced the internal guidelines for their staff and as a result reduced the risks to
corporate governance.
Corporate governance has become more systematic. Staff at all levels understand the need
to monitor and control product and service quality. Better quality management has been
achieved.
All Rights Reserved Page 55 of 62
For Labour Practices:
Since the execution of CSR policies, the staff turnover rate has dropped for three consecutive
years. The sick-leave rate among staff has been dropping for four consecutive years (from
0.78% in 2007 to 0.60% in 2010) and productivity has been further enhanced.
Most of the job applicants at Alliance, especially those who have a bachelor’s degree or
above, expressed in the job interviews that the reason for joining Alliance is the company’s
outstanding performance in CSR.
For The Environment:
The carbon emission intensity has been reduced by over 20% compared to the base year
2007. It has been clearly reflected in the reduction of energy costs.
References: http://investing.businessweek.com/businessweek/research/stocks/private/snapshot.asp?privcapId=34165703
4.5.2 Fuji Xerox (Hong Kong) Limited
Fuji Xerox (Hong Kong) Limited (“Fuji Xerox”) is a leading provider and system integrator in
knowledge and document management solutions in Hong Kong. Established in 1964 and
known formerly as Rank Xerox (Hong Kong) Limited, Fuji Xerox Hong Kong became part of
Fuji Xerox Company Limited in December 2000. It now has more than 800 employees.
Committed to helping customers increase their competitive edge, Fuji Xerox Hong Kong
provides an unparalleled spectrum of document management solutions and services, ranging
from multifunction systems, printing, imaging, business process outsourcing to document
management and consulting. These solutions and services empower enterprises of all sizes
to enhance their productivity and to achieve effective utilisation of knowledge, leading to the
highest profitability and the utmost competitiveness.
The changes and gains it has experienced since participating in the HKQAA - HSBC CSR
Advocate Index are:
All Rights Reserved Page 56 of 62
For Organisational Governance:
Fuji Xerox has formulated a set of policies which strictly complies with the legal requirements
of Hong Kong. It provides clear guidance to staff on corporate policy and business operations
and in return enhances the confidence level of stakeholders in Fuji Xerox.
For Labour Practices:
The improvement of goodwill and the advocate’s reputation is reflected by the advantages
gained in the recruitment of staff.
The staff turnover rate has dropped by 20% annually compared to the base year 2008.
For The Environment:
With the success of “Green Workplace” policies, more new clients are attracted to Fuji
Xerox’s products and services.
Fuji Xerox reduced 142 tons of carbon dioxide in 2010 compared to 2009 which amounted to
7% of the total reduction. The energy cost saved was HKD$200,000. The benefits brought by
the projects from the Quality Improvement Unit reached HK$16 million.
References: http://www.fujixerox.com.hk/index.php/FrontEnd/detail/52/1
4.5.3 Housing Department
The Housing Department supports the Transport and Housing Bureau (THB) in dealing with
all housing-related policies and matters.
The Housing Department also acts as the executive arm of the Hong Kong Housing Authority
(HA), which is a statutory organisation tasked with developing and implementing a
programme to help the government achieve its policy objectives on public housing.
The Housing Department was re-constituted from the merger of the former Housing Bureau
and the former Housing Department in 2002. It is headed by the Permanent Secretary for
Transport and Housing (“Housing”) who also assumes the office of Director of Housing.
All Rights Reserved Page 57 of 62
The changes and gains it has experienced since participating in the HKQAA - HSBC CSR
Advocate Index are:
For Organisational Governance:
The operational efficiency has been improved along with the improvement of Organisational
Governance.
For Human Rights:
The Housing Department has completely avoided sexual, racial and all other kinds of
discrimination in the workplace.
The Housing Department has improved the ability of staff to handle disputes and issues
involving minorities.
For Fair Operating Practices:
The Housing Department has developed a fair, open competition platform for its vendors,
suppliers and sub-contractors. This platform attracts more bids for the Housing Department’s
contracts, and as a result lowers the overall costs of projects.
For Consumer Issues:
Participation in the HKQAA-HSBC CSR Advocate Index and other kinds of CSR measures
has brought the Housing Department a positive image and enhanced the public’s
understanding of the Housing Department.
References: http://www.housingauthority.gov.hk/en/aboutus/hd/0,,1-0-0-0,00.html
4.5.4 Tsuen Lee Metals & Plastic Toys Company Limited
Tsuen Lee Metals & Plastic Toys Company Limited (“Tsuen Lee”) was founded in 1982. It is
an Original Equipment Manufacturer (OEM) specialising in the production of plastic toys,
accessories, consumer goods, gifts, etc. Tsuen Lee has its headquarters in Hong Kong and
factories in Guangdong and Jiangxi.
All Rights Reserved Page 58 of 62
The changes and gains it has experienced since participating in the HKQAA-HSBC CSR
Advocate Index are:
For Labour Practices:
The staff turnover rate has dropped from 20% to 10%.
The human resources policies have significantly increased the morale, sense of belonging
and sense of responsibility of staff. They have enhanced the job satisfaction of staff resulting
in an improvement in productivity.
The recruitment of staff has become easier even when there is a labour shortage. The
problem of labour shortages is less serious than for their competitors. Competitiveness has
increased and more orders have been received in return.
For The Environment:
The sense of environmental protection of workers has been improved. They are more aware
of energy saving and efficient use of resources in production.
For Consumer Issues:
Complaints about products and services from clients have decreased significantly. The brand
reputation of the advocate has improved.
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4.5.5 Canon Hongkong Company Limited
Established in 1971, Canon Hongkong Company Limited (“Canon”) is responsible for sales,
marketing and services of all Canon product lines in Hong Kong SAR, Macau SAR, Taiwan,
the Philippines and Mongolia, including its digital cameras, digital video camcorders, printers,
copiers, scanners, projectors and other imaging merchandise.
Canon adheres to Canon’s corporate philosophy, Kyosei, which in essence motivates the
company and its staff to proactively strive for harmonious coexistence with other citizens
through participation in various social, charitable and environmental activities. From 2009, the
Hong Kong Quality Assurance Agency has awarded Canon the HKQAA - HSBC CSR
Advocate Mark recognising Canon’s continuous efforts of contributing to corporate social
responsibility.
Furthermore, Canon also endeavours to adopt internationally recognised management
systems, having become certified in conformance with ISO 9001, ISO 14001 and OHSAS
18001 in 2003, 2004 and 2005 respectively. CHK is certified to the COPC-2000 CSP
Standard in 2006.
The changes and gains it has experienced since participating in the HKQAA - HSBC CSR
Advocate Index are:
For Organisational Governance:
The all-around training in business ethics ensures that business goodwill will not be
hampered by the inappropriate business activities of staff.
The channels for mutual communication and feedback are improved. Protection and
management of business confidentiality is also strengthened.
For Labour Practices:
The Kyosei corporate culture has attracted talents from around the globe to join the company.
There are now 197,386 staff working for Canon worldwide.
The human resources policies have been paying more attention and care to the needs of staff.
More training and career development opportunities are offered. All of these have
significantly increased the morale and sense of belonging of staff.
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For The Environment:
The advocate has reduced the negative influence on the natural environment by setting
guiding principles of Green Product Cycles and putting them into action:
- The advocate has developed a non-combustion-supporting plastic called Ecodear
and is using it in the production of machine components.
- The advocate has innovated energy-saving technology for its printers, reducing
energy use by up to 75%, and as a result lowering operational costs for their clients.
- The advocate has launched the Toner Cartridge Recycle Programme. This
programme not only reduces the waste buried in landfills, but also reduces the
consumption of natural resources in the production of products. Since the launch,
the programme has collected 266,000 tons of toner cartridges worldwide and
saved 168,000 tons of raw materials and 402,000 tons of carbon dioxide
emissions.
The environmental policy adopted by Canon Hongkong Limited has brought Canon the
following outstanding achievements:
- With the development of the Carbon Dioxide Management Project, it had an extra
saving of 40,000 tons of carbon dioxide in 2009 as compared to 2008.
- Energy-saving measures have been adopted for years in their Hong Kong office.
The T5 highly efficient energy-saving fluorescent tubes consume 30% less energy
and successfully saved 4.6% of the total energy cost. This will be installed in offices
in other countries in 2011.
- Canon recycled 70 tons of products in the first six months of 2011 in Hong Kong. The
recycle rate is over 99%.
For Consumer Issues:
Customer satisfaction has been significantly improved along with better after-sales service.
Reference: http://www.canon.com.hk/en/corporate/main/index.jspx
http://www.canon.com.hk/en/services/toner/toner_welcome.do
http://www.canon.com.hk/en/corporate/main/Sup_Environment_2010.jspx
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4.5.6 Leo Paper Group
In 1982 Leo Paper opened its doors as a traditional printing company and since then it has
grown into a leading global printing communications company, providing their clients with
comprehensive services. Committed to being a total solution provider, they make creativity a
reality, enabling people to reach out and communicate with each other in better ways. Their
commitment to quality means that service and product offerings are continuously improved,
making the benefits more tangible.
A value shared by Leo is a deep concern for the environment and for society as a whole. It
supports not only the green programmes, but all aspects of the Leo community; dedication to
staff members and natural resources, coupled with a commitment to honesty, fairness and
ethical operations, ensuring long-lasting and large-scale benefits for society as a whole.
The changes and gains it has experienced since participating in the HKQAA - HSBC CSR
Advocate Index are:
For Organisational Governance:
The corporate governance of the group was enhanced. Policies and procedures for avoiding
conflicts of interest, anti-corruption, etc. were developed.
For The Environment:
Reduction of energy consumption and carbon emissions were achieved through the
environmental protection work of the group.
For Consumer Issues:
Consumers are more confident in Leo Paper Group’s products and services and recognise
the group’s vision and mission along with its dedication to CSR. The brand’s reputation has
improved.
Continuous improvement was shown in the group’s services and in return, customer
satisfaction was raised.
Reference: http://www.leo.com.hk/about/company-information.html
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4.6 Conclusion
It is clear that Alliance Construction Materials Limited, Fuji Xerox (Hong Kong) Limited,
Housing Department, Tsuen Lee Metals and Plastics Toys Company Limited, Canon
Hongkong Company Limited and Leo Paper Group have benefited from participation in the
HKQAA - HSBC CSR Advocate Index in terms of the performance of organisational
governance, human rights, labour practices, fair operating practices, consumer issues and
community involvement and development. The productivity and operational efficiency have
been enhanced through their execution of CSR-related policies and measures. All of these
six advocates have joined the HKQAA - HSBC CSR Advocate Index 2011 and we look
forward to seeing more advocates participating in the index in the future.
Hong Kong 香港香港香港香港
Tel: (電話):(852) 2202 9111
Fax: (傳真):(852) 2202 9222
Email: (電郵):hkqaa@hkqaa.org
Website: (網址):www.hkqaa.org
Beijing 北京北京北京北京
HKQAA Certification (Shanghai) Ltd Beijing Representative Office 標準認證服務(上海)有限公司
北京辦事處
Tel: (電話):(86 10) 6833 3262
Fax: (傳真):(86 10) 6833 0812
E-mail: (電郵):info.bj@hkqaa.org
Shanghai 上海上海上海上海
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
Email: (電郵):info.sh@hkqaa.org
Guangzhou 廣州廣州廣州廣州
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
Email: (電郵):info.gz@hkqaa.org
Suzhou 蘇州蘇州蘇州蘇州
HKQAA Certification (Shanghai) Ltd Suzhou Representative Office 標準認證服務(上海)有限公司
蘇州辦事處
Tel: (電話):(86 512) 6900 9119
Fax: (傳真):(86 512) 6512 9119
Email: (電郵):info.sz@hkqaa.org
Chicago 芝加哥芝加哥芝加哥芝加哥
US Representative Office 美國代表處
Tel: (電話):(1 773) 344 4066
Fax: (傳真):(1 312) 949 1445
Email: (電郵):info.us@hkqaa.org
© 2011 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.