Mainland Chinese companies make strong showing in CSR policies
The majority of
The Corporate Social Responsibility Survey of Hang Seng Index Constituent Companies, released by Oxfam Hong Kong, examines the CSR policies of the 43 companies listed on Hong Kong's Hang Seng Index,
The report shows that 26 companies scored less than 50 per cent and eight companies scored below 10 per cent.
However, the research also highlighted certain companies with excellent CSR initiatives in place. HSBC ranked first out of all HSI-listed companies with a total score of 93 per cent, followed by CLP Holdings (84 per cent) and China Mobile (82 per cent).
The positioning of China Mobile in third place and other Hong Kong-listed mainland companies making it into the top list of 18 companies reflects some interesting developments in the area of CSR in the region.
Many Chinese companies such as China Mobile, Foxconn International Holdings and China Resources Enterprise are setting a benchmark on CSR for other mainland Chinese companies to follow.
“We may increasingly see mainland companies leapfrogging
Global companies will increasingly have to face social and environmental standards that are becoming the norm and certain mainland Chinese companies are starting to reflect this global outlook. The results of the report show there is growing awareness in the mainland of the strategic value of having good CSR practices in place.
Overall the areas where the companies were strongest in their CSR initiatives were corporate governance, strategy, stakeholder engagement and community investment.
CSR practices of leading companies
The leaders stood out from the other companies by implementing CSR committees that report directly to the board of directors, including women on the board of directors and implementing codes of conduct and ethics training for all employees.
Many of the leaders commit to a reporting guideline like the Global Reporting Initiative, publish separate CSR reports, and support additional charters like the UN Global Compact and the Equator Principles.
Leading companies also consider the opinions of most or all stakeholders such as employees, consumers, shareholders or investors, local government, national government, competitors, trade associations, environmentalists, media and community groups.
In terms of supply chain issues, leaders perform well by introducing supplier codes of conduct and holding their suppliers to account for the company's environmental, health and safety and labour standards.
Leading companies tend to have comprehensive health and safety education and training programs in place, coordinate employee skills management or lifelong learning programs, state clear policies on equal opportunities and conditions of employment, and have policies or procedures regarding grievances, harassment, overtime compensation, freedom of association and HIV/AIDS.
In terms of environmental issues, leading companies measure most types of emissions and consumption across their operations and utilise environmental management systems such as ISO 14001. Leaders also set specific goals for emission and waste reduction and implement appropriate programs to achieve these objectives.
