CSR Corner
Why Corporate Transparency?
As
a development and humanitarian agency, Oxfam’s work on poverty is widely acknowledged. However, when we urge companies to be socially responsible, or to be more transparent about their business practices, many ask how these issues are relevant to the livelihoods of poor people. Oxfam Hong Kong believes companies should implement corporate social responsibility (CSR). Our understanding of the notion of CSR goes beyond philanthropy or staff volunteering. CSR is fundamentally seen in business practices, including the presence of ethical supply chains, the alignment of labour practices with international standards, the mitigation of company operations’ impacts on the environment, etc. We strongly believe that if companies are responsible in their business practices, a greater number of people would benefit, including their workers. Adopting higher labour standards also addresses the problem of employment poverty. Transparency is crucial to CSR. Oxfam believes that companies should let people know the impact of their operations on society and environment. Two years ago, we undertook the first research on disclosure of Hong Kong garment companies’ labour practices. The results were rather disappointing, as most companies scored zero out of 100 points in the rating exercise.
Recently, we revisited this issue, publishing the second transparency report in March 2009. Credit should be given to those few companies that scored high, as well as companies that were willing to cooperate with Oxfam and our consultant, CSR Asia, during the research. In general, however, the majority are still far from satisfactory in terms of transparency in their labour practices. Of 26 surveyed companies, 19 received zero points, another five scored from 10 to 33 points, and almost all of them are still below international standards. Esquel is the only Hong Kong-based firm to score high, with a mark of 70, which is comparable to the best scorers in an earlier survey of companies in Canada. Companies that act responsibly are happy to let their customers and investors know about their actions. They are the ones most willing to undertake social and environmental reporting because they enjoy the benefits of having greater transparency and a good corporate image, both of which attract more business opportunities. Consumers can exercise their power by choosing to buy only ethically produced goods from companies. Investors could likewise make their investment decisions to support only those companies committed to social and environmental responsibility. If companies behave in a transparent manner, labour rights would be better ensured. When companies adhere to international labour
EXPRESS
Issue 2, Summer 2009
If undelivered, please return to 17/F, China United Centre, 28 Marble Road, North Point, Hong Kong
Cover Story
Not just about statistics - an interview with The Nielsen Company
standards, they help improve the livelihoods of their workers, thus contributing to the well-being of poor and disadvantaged people. Oxfam believes that transparency, challenging as it is, is an opportunity for companies, rather than a threat. We believe that corporate transparency is an important first step for a corporation to achieve meaningful CSR. And in acting responsibly, companies can enjoy financial returns, while society as a whole can prosper.
Words from Oxfam
After 5.12
For details on Oxfam’s Transparency Report II: Have Hong Kong Garment Companies Improved their Reporting on Labour Standards? please visit http://www.oxfam.org.hk/public/contents/54193
On
Corporate Acknowledgement
Oxfam Corporate Donor Programme Outstanding Award 2008-2009
In
T
order to show our high appreciation to the continuous sponsorship and support from our members to Oxfam Corporate Donor Programme for the last 12 months, outstanding awards were presented to the following awardees:
(in alphabetical order) Oxfam Corporate Donor Outstanding Award (HKD20,000 or above) Tai Shing Group (Holdings) Co Ltd Prince Jewellery & Watch Co Wing Hang Bank Hong Kong Health Check and Laboratory Holdings Company Ltd Winnie Leung & Co Agile Property Holdings Ltd Marriott Vacation Club Asia Pacific HOCC Charity Fund Ltd Hang Seng Bank Cathay Pacific Catering Services (HK) Limited
Oxfam Corporate Donor Outstanding Awardees with Oxfam Ambassador, Ms. Myolie WU Hang-Yee, Hong Kong Director of Oxfam Hong Kong, HO Wai-chi and Deputy Director of Oxfam Hong Kong, Kanie SIU
Health Check Charity Funds Oxfam Corporate Donor Excellence Award (HKD50,000 or above)
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TNT Express Worldwide (HK) Ltd
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Towngas Sino Group
Enquiry for programme details and acknowledgement:
Lovells
3120 5263
Oxfam Corporate Donor Honour Award (HKD200,000 or above) The Nielsen Company Hong Kong Limited
Address: 17/F, China United Centre, 28 Marble Road, Hong Kong.
Tel: 3120-5263
Fax: 2527-6213
Website: www.oxfam.org.hk
Editorial Committee: Kanie Siu, Gary Ku, Merida Cheung Issue 2, Summer 2009
Email: meridac@oxfam.org.hk
Ms. Fanny Chan
Managing Director of The Nielsen Company (Hong Kong)
he field of market research usually projects a cold impression, with its tangle of numbers and calculations and report after report of quite intimidating data and statistics.
Budget unaffected by downturn In the face of the economic downturn, Fanny Chan says, the company has not trimmed its CSR spending. The ultimate concern is to make sure that resources are used in the right way.
The Nielsen Company is making things warmer with a number of initiatives that lighten up the industry. Fanny Chan, Managing Director of The Nielsen Company (Hong Kong), tells Oxfam Hong Kong all about it.
She also has a suggestion for NGOs: agencies need to enhance their communications, which would then enhance the transparency and accountability of their work.
“The ideas came from our Staff Club, which comprises employees from different departments - they had little influence from the management. These initiatives were rather arbitrary at first, ranging from helping the elderly and children, to emergency fundraising,” she says.
As society evolves, people will respond to the social issues that strike them as important. One thing is sure - we will work with NGOs that are credible and responsive
Add value to branding With a growing awareness of corporate social responsibility (CSR), Nielsen has started to focus its projects on youth and the environment. Its staff are also encouraged to take part in volunteer activities. Apart from the joy of helping others, the company as a whole also benefits.
Altruist Financial Group Ltd
Oxfam Hong Kong
The Nielsen Team
Fanny Chan explains the rationale, “Staff members learn more about society, which adds value to their capacities. Team spirit can also be strengthened.” In the research industry, there is a practice among some companies to provide incentives to their interviewees, such as discount coupons. In 2003, Nielsen Hong Kong suggested donations in the respondent’s name to a non-profit entity instead, and interviewees took to it enthusiastically. The news spread to Nielsen’s offices in other countries and those types of donations have become common practice in the market research firm now. “This shows both internally and externally that Nielsen is not just commercially oriented. While the concept of social responsibility is still new in the industry, the situation is much better than it was five years ago. As a leader in the industry, Nielsen performs as a role model for others to follow,” Chan enthuses.
Clearly, Nielsen will not be puzzled by the lumps of data and statistics in their daily business. They also have a clear mind in choosing Oxfam as their beneficiary and partner.
Year 2008
Sichuan earthquake Nielsen donated funds for two temporary schools to be built in earthquake-affected areas in Huili, Sichuan Snowstorms in China Donated funds for Oxfam Hong Kong’s snowstorm relief
12 May, 2008, an earthquake rocked Sichuan province. Tens of thousands of people died, and many more were injured or lost their homes. Amidst the rubble, collapsed roads and numerous aftershocks, Oxfam Hong Kong staff were among the quickest to react, delivering emergency supplies and services to survivors. Oxfam Hong Kong felt compelled to respond to this major disaster in our own country, and to do so in as professional a way as possible, drawing on our experience from emergencies around the world. More than a year has passed since the disaster. Oxfam Hong Kong is working closely with Mainland authorities and partners to help communities reconstruct the affected areas and help residents recover their way of life. We focus on more remote villages, and use a participatory approach in reconstruction projects, involving the whole community in planning rehabilitation efforts. Although there has been significant improvement in people's livelihoods and good work has been done to reduce the risks and impacts of future natural disasters, the road to full recovery is still long.
Oxfam Hong Kong staff delivered supplies and services to survivors
In January 2009, Oxfam Hong Kong signed a Memorandum of Understanding with the State Council Leading Group Office of Poverty Alleviation and Development, the first high-level partnership with an international development organisation in the Mainland. The Memorandum enables Oxfam Hong Kong to carry out reconstruction work in 80 of the poorest and remotest communities in Sichuan, Gansu and Shaanxi provinces. We expect this work to continue for another two to four years. Ongoing support from the business sector is crucial in pushing forward these projects. With 22 years of relief and development experience in the Mainland, we will make sure every cent of your donation is spent on the rehabilitation of those whose lives were damaged by the earthquake. You can log on to our website www.oxfam.org.hk to keep track of the full range of our earthquake recovery work in Sichuan, Gansu and Shaanxi provinces.
John Sayer
Director General, Oxfam Hong Kong
Issue 2, Summer 2009