CSR Corner
Top-listed companies should take the lead in CSR movement
Oxfam rated them according to six domains, namely, CSR reporting, stakeholder engagement, workplace, environment, supply chain and community investment. Though many companies have shown real improvement in responding to the survey, there is still plenty of room for them to catch up with international best standards on CSR. The top performers in this survey were HSBC (Holdings) Ltd. (80%), China Light Power Holdings (77%), and China Mobile Ltd. (76%). Transparency is an essential criterion to achieve a high score. Of the 31 companies listed in the “leader” (scoring 60% or higher) and “mainstream” (40-59%) categories, 29 of them responded. For those companies that did not respond, our research consultant CSR Asia, would then gather information from public documents, such as annual reports, as to complete their questionnaires. Fifty-seven per cent of the respondents have published a CSR report, but only 40 per cent use the Global
Reporting Initiative, the most widely used sustainability reporting framework worldwide. Among these, only half of them scored well enough to ensure them a place in the leader category. Supply chain is another area of concern. Thirty-six per cent of companies said they have no dialogue with their suppliers regarding CSR issues. Sixty-nine per cent actually already have a supplier code of conduct, but only 36 per cent implement it across all of their operations. This has serious implications for ethical practices because of the extensive nature of these big companies’ supply chains. In the area of workplace quality, we looked into some corporate practices beyond statutory requirements. For instance, only 23 of 42 companies provide paternity leave for their employees, while the rest neglect the caring duty of fathers. On the environmental side, it was encouraging to see that 43 per cent of the companies are setting reduction targets on, at least, one of four items: greenhouse gas emissions, energy, water and paper. However, performance varies significantly. Only the leading companies have set reduction targets on all items. Group or division-wide tangible reduction targets are less likely to occur in companies. Only 19 per cent of the companies align their community investment goals with the U.N. Millennium Development Goals or national development goals, while 29 per cent have systems to measure the impact of their investments. This indicates that many companies have failed to adopt a strategic approach to community investment. “We believe when the private sector adopts policies and practices
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Cover Story
For details, you can download the report: Corporate Social Responsibility 2009 Survey of Hang Seng Index Constituent Companies from the following link: http://www.oxfam.org.hk/content/98/content_4371en.pdf
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Corporate Acknowledgement
Oxfam Corporate Donor Programme (CDP) 2009-2010
In
order to show our high appreciation for the continuous sponsorship and support from our members in the Oxfam Corporate Programme for the last 12 months, outstanding awards were presented to the following awardees: (In alphabetical order) Oxfam Corporate Donor Outstanding Awardees Action Waterfall Gym Chinese Estates Group Paper House Creations
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Editorial Committee: Kanie Siu, Cindy Chan, Merida Cheung Issue 3, Summer 2010
- AN INTERVIEW WITH MARRIOTT VACATION CLUB INTERNATIONAL (ASIA PACIFIC)
Words from Oxfam
In addition to calling on HSI companies to improve their CSR policies and practices, Oxfam also calls for stronger regulations from the government, leveraging on the ongoing Companies Ordinance Rewrite effort to strengthen the disclosure of non-financial corporate data based on the GRI standard. We also recommend that the Hong Kong Stock Exchange should require listed companies to publicly disclose their CSR performance as a mandatory listing principle. Oxfam believes both voluntary efforts of companies and mandatory measures imposed by regulators would create - and sustain - the momentum for bringing CSR to a higher level.
O.N.E - Oxfam News E-magazine
Oxfam Hong Kong
ALL-ROUND ENTHUSIASM
on CSR into its operations, it helps translate the positive aspects of its business activities, such as economic growth, fair labour practices and good environmental protection, into development that favors poor people, “commented John Sayer, Director General of Oxfam Hong Kong.
About Oxfam
Oxfam Corporate Donor Excellence Awardees Chow Tai Fook Jewellery Company Limited Dah Chong Hong, Ltd. Hong Kong Exchanges and Clearing Limited Hong Kong Health Check & Medical Diagnostic Group Limited Jetronic Electronics Ltd Marie Claire Magazine Shun Hing Group Store Friendly Self Storage Group Tai Shing Group (Holdings) Co. Ltd. The Hong Kong and China Gas Company Limited TNT Express Worldwide (HK) Ltd.
Issue 3, Summer 2010
Email: meridac@oxfam.org.hk
Oxfam’s works in China
The Ms. Jean Choi, Director of Marketing of Marriott Vacation Club International (Asia Pacific) and her enthusiastic team from the Hong Kong office.
S
tepping into the office of the Marriott Vacation Club International Asia Pacific (MVCI Asia Pacific) on a day with a red rainstorm signal, our spirits brightened by the genuine smiles on all the young and energetic faces that greeted us. As an industry leader, MVCI Asia Pacific offers spectacular vacation experiences in spacious accommodations to suit the needs of today’s travellers. MVCI has more than 25 years of experience, MVCI Asia Pacific was launched in 2006 and currently has more than 8,000 members in Asia. Jean Choi, Director of Marketing, told us all about it. The Spirit to Serve “At Marriott, our ‘spirit to serve’ is our core value, which comprises our guests, associates (staff), and our community. Guests are welcome to comment on our service quality and the associates are encouraged to share their opinions about their working environment. Participating in community activities allows our associates to give back to society and assist people in need,” said Jean.
Partnering with Oxfam has been very rewarding. Not only did we give back to the community, but through the rice-selling activity organised by Oxfam, our associates from different teams got to know each other better, which helped encourage better teamwork as well as synergy in the work place.
This is the second year MVCI Asia Pacific joined Oxfam’s Corporate Partnership Programme. Through its associates, the company has raised more than HK$100,000 and spent over 250 volunteer hours participating in Oxfam’s activities. Jean explained why Oxfam was chosen as the company’s beneficiary NGO: ‘We believe Oxfam’s work can help people in need. In addition, our colleagues, their friends and families can participate in Oxfam’s activities. They enjoyed joining the rice-selling event and raising public awareness of the programme.
Photo by Ricky Wong
In
April, Oxfam released its second Corporate Social Responsibility (CSR) Survey on forty-two Hang Seng Index (HSI) Constituent Companies. Hong Kong’s largest and most liquid listed companies are scoring high marks on engaging stakeholders and are increasingly aware of the importance of CSR strategy and reporting. Still, a majority of them have failed to embrace CSR in its totality. They are weakest in incorporating CSR policies and monitoring systems into their supply chains, adopting specific targets to reduce negative impacts of their operations on the environment, and contributing to long-term community investment strategy (beyond charity donations).
EXPRESS
start of 2010 was difficult for poor people across China. The worst drought in decades hit millions of people in southwest China, with people having to walk for miles to find water, and farmland drying up. In April a deadly earthquake hit Qinghai and Sichuan. Then in June, heavy rains drenched southeast China, resulting in serious flooding in Guizhou. Oxfam responded to all these crises. Following the earthquake, we provided blankets, tents and other supplies to keep people warm: temperatures were freezing at night. During the drought, we provided drinking water and other support for people in Yunnan, Guizhou and Guangxi. After the flooding in June, Oxfam distributed relief items to more than 2,500 people, including quilts, rice, cooking oil and folding beds, in Gangwu Township of Guanling County, Guizhou Province. At the time of this writing, Oxfam is distributing quilts, rice, cooking oil, cookware and clothes to 4,142 flood-affected people in 1,035 households in Malong County, Yunnan. We are happy that the Disaster Relief Fund of Hong Kong SAR government granted HK$980,000 for this project.
Strengthened Client Relationships With a growing awareness of corporate social responsibility in recent decades, MVCI Asia Pacific has initiated various campaigns internally and externally. In one of its marketing initiatives, MVCI Asia Pacific donated HK$100 to Oxfam for every guest who attended the vacation preview session. Last year, more than 340 guests joined the programme and the funds collected contributed to Oxfam’s poverty alleviation projects. Apart from Oxfam’s activities, the 140 associates of MVCI Asia Pacific participated in other charitable events. These include blood drives, donating second-hand items, charitable walkathons, etc. The latest staff activities are updated in the company’s bi-weekly newsletter, to encourage staff participation. MVCI is also concerned about the environment. The company provides its staff with energy-saving tips issued by the Electrical and Mechanical Services Department and encourages them to adopt environmentally friendly practices at work. Because of its outstanding achievements in community service, the Hong Kong Office was nominated for the group’s 2010 Alice S. Marriott Award of Community Service. Jean concluded that while NGOs in Hong Kong are putting lots of effort into promoting their events, her company is happy to have its staff volunteer and join in activities to build stronger working relationships and team morale. Year 2009 • Donated through the “Marriott Vacation Club Cares Programme” • Co-sponsored the Oxfam Rice Sale Fundraising Campaign • Volunteered for Oxfam Rice Sale Fundraising Event Year 2010 • Donated through the “At Marriott We Care Programme” • Donated through the “Marriott Vacation Club Cares Programme” • Volunteered for Oxfam Rice Sale Fundraising Campaign
Oxfam Hong Kong staff delivered supplies and services to survivors.
In all these responses, Oxfam worked alongside government units and local community groups (for more details, visit www.oxfam.org.hk). We also thank the companies that donated to support all this humanitarian work. Apart from these disasters, Oxfam is currently supporting more than 480 poverty alleviation projects across rural and urban China, aimed at bringing people better livelihoods, basic health care, basic education, and more. “More Than Just a Bowl of Rice” is the theme of our China Development Fund Campaign 2010. Oxfam does not believe in short-term one-off support, but in long-term partnerships for lasting change. To support our anti-poverty work across China, the Oxfam Rice Sale Event was held from 8 to 30 May. We raised over HK$2.2 million to contribute to the Oxfam China Development Fund. We are grateful that more than 200 organisations and 3,500 volunteers supported this event. Thank you for all your support. We value your partnership.
John Sayer
Director General, Oxfam Hong Kong
Issue 3, Summer 2010