Survey on Corporate Social Responsibility

Survey on Corporate Social Responsibility

Appendix

CUEMBA – Group Project on CSR

Survey on Corporate Social Responsibility

The following surveys and research are conducted by 5 group members on an individual basis from Mar 18 – Apr 11, 2008. Final scores may be adjusted upon further discussion of all 12 companies on a relative scale.

Company: MNC Bank (Citigroup) vs. Local Bank (Hang Seng Bank)

Please circle one option that best represents the situation of your company in each of the following questions:

Citigroup / Hang Seng Bank
The Six Criteria of Caring Company
Nominator in Hong Kong for 2006/7 / Caritas – Hong Kong
Fu Hong Society
Hope Worldwide Limited
Junior Achievement Hong Kong
Tung Wah Group of Hospitals / The Boys and Girls Club Association of Hong Kong
1. Volunteering – encourage and support employee volunteering /  / 
2. Family Friendly – provide a family-friendly and gender sensitive environment for employee /  / 
3. Employing Vulnerable – be willing to employ vulnerable group / 
4. Partnering – develop partnership projects with the social service sector /  / 
5. Mentoring – share business expertise with social service organization /  / 
6. Giving – Donate or give in-kind to social service organization /  / 
Indepth Evaluation:
CSR Concept: What best describes CSR in your company? How broad is your CSR concept?
  1. Just the Basic: Job, Profit, Taxes.
  2. Functional Focus: Philanthropy, community relations, environmental protection.
  3. Stakeholder engagement and management.
  4. An Integrated Concept: Triple bottom line, with equal importance assigned to economic, social and environmental factors.
  5. Embedded in the corporate DNA: It is the way we define and do business.
/ E
Focus on Financial Education (since 2004) and Community Service in Hong Kong.
High level management staff involvement and coordinated efforts for staff involvement
Coordinated efforts for whole of Citigroup  Consumer Banking, Corporate Banking and Private Bank in one concerted efforts / E
High level of management commitment – with top management involvement and commitment (CEO – Mr. Or)
  • Core existence – manage profitability, commit to employees development, risk mgmt, corporate compliance, responsible financing and investment management, etc. and measure against it
  • Encompassing Community, Sport, Education, Art and Culture, Environment, Donation on the soft-side
  • 2005 and 2006 Responsibility Report
  • In 2001, a constituent stock of the FTSE4Good Global Index, which tracks the performance of companies that meet internationally recognised corporate responsibility standards.
  • CSR measured in terms of core business sustainability, monetary contribution and employees involvement
  • Continue to provide excellent job opportunities to HK and good business returns
  • Sizable Donation – HK$16MM to HK$21MM (10 years accumulated HK$180MM)
  • Hours  4683 hours to over 9000 hours
  • 440 sport activities for staff and family with 14,000 people participation
  • Go Green – saving 8 million sheets of paper per year. Planted 10,000 trees last year with 50,000 trees since 1999. – ISO14001 and Green Enterprise of the Year Award

Strategic Intent: What is your company’s strategy with regard to CSR? Does your company believe that CSR has an impact on reputation? On recruiting and retention? On bottom line performance? Is CSR integrated into your company’s business model?
  1. Legal compliance.
  2. Preserving our reputation and license to operate.
  3. The Business Case: Traditonal ROI criteria.
  4. Business Case plus Value Proposition: In addition to traditional ROI criteria, company values are seen as a key driver for assessing risk and opportunity.
  5. CSR is a part of our business model: A focus on market opportunity and creation.
/ D to E / D to E
Operation: Are there people or units with specific responsibilities for CSR activities in your company? Do they exchange information across units? Coordinate actions? Work together? Are there cross-functional committees or groups that address social and environmental performance? Is CSR integrated into the line business operations?
  1. Marginal: Functional heads “ do their own bit.” CSR is fragmented or non-existent.
  2. Functional: There are units with specific CSR related responsibilities, but activity is still mostly siloed.
  3. Cross-functional co-ordination: CSR responsibility is co-coordinated across units.
  4. Aligned: There is vertical buy-in across the company and lines of business are engaged.
  5. Integrated: CSR is driven by the business, and activities cut across and are owned by functions and business units.
/ E / D to E - Permeate into every levels with high level of participation – culture
Issues Management: How does your company handle social and environmental issues that arise? Are there clear policies on these matters? Effective programs? Goals and measurements? Are CSR issues managed as other vital activities in the company? Is there a proactive approach to issues as opportunities?I would characterize my company’s approach to issues management as:
  1. Defensive: Issues are handled as one-offs.
  2. Reactive: We have programs on paper, but many are not fully implemented.
  3. Responsive: We have operationalized policies and programs on key issues relevant to the company.
  4. Responsible: We have programs along with plans, goals and performance measures on the management issues we face.
  5. Proactive: Plans and actions are ahead of the curve. We anticipate and prepare for emerging issues-both risks and opportunities.
/ D to E / D to E Proactive approach – e.g. compliance, investor management, customer education, customer support in financial, etc. risk management, etc. are spelled out quite clearly  e.g guideline in investment in special industry
Stakeholder Relations: How does your company relate its stakeholders? Does it communicate openly and regularly? Are there good working relationships with stakeholders? A relationship of mutual benefit? A relationship of partnership?I would characterize my company’s approach to stakeholder relation as:
  1. Unilateral: We generally have one-way communication with stakeholders.
  2. Interactive: We generally have two-way communication with stakeholders.
  3. Consultation: We have a relationship of mutual influence, in which stakeholders influence the business and the business influences stakeholders.
  4. Win-Win: We have a shared agenda with stakeholders and we all do our part.
  5. Partnership: We work together with stakeholders on important issues and learn from them as equal partners.
/ D to E / Very likely D to E – benchmark and annual report on CSR started since 2004  a comprehensive section in the website to announce about latest activities as well as how they made contribution to the CSR.
Transparency: To what extent does your company communicate about its financial, social and environmental performance? Is there public reporting? Outside verification of performance result?
  1. Flank protection: minimal disclosure
  2. Public relation: Some disclosure, emphasizing good news
  3. Public reporting on citizenship related issues
  4. Full disclosure of goals and results
  5. We seek third party assurance and verification for our reported results
/ B to C / C to D with some E: as saw in their website, there is annual reporting on CSR and endorsing agencies such as ISO, industrial association and global organization of sustainability index is used to endorse or recognize its actions

CUEMBA – Group Project on CSR

Survey on Corporate Social Responsibility

Company: MNC Insurance Company (AIG) vs. Local Insurance Company (Pacific Century Insurance)

Please circle one option that best represents the situation of your company in each of the following questions:

AIG / Pacific Century Insurance
The Six Criteria of Caring Company / (AIA Pension and Trustee Co. Ltd. & AIG Private Bank, AIA)
Nominator in Hong Kong for 2006/7 / Yan Oi Tong
Hong Kong Sheung Kung Hui St Christopher’s Home
Agency for Volunteer Service / St James Settlement
1. Volunteering – encourage and support employee volunteering /  / 
2. Family Friendly – provide a family-friendly and gender sensitive environment for employee /  / 
3. Employing Vulnerable – be willing to employ vulnerable group / 
4. Partnering – develop partnership projects with the social service sector /  (AIG Private Bank) / 
5. Mentoring – share business expertise with social service organization / 
6. Giving – Donate or give in-kind to social service organization /  (AIG Private Bank) / 
Standard Evaluation
CSR Concept: What best describes CSR in your company? How broad is your CSR concept?
  1. Just the Basic: Job, Profit, Taxes.
  2. Functional Focus: Philanthropy, community relations, environmental protection.
  3. Stakeholder engagement and management.
  4. An Integrated Concept: Triple bottom line, with equal importance assigned to economic, social and environmental factors.
  5. Embedded in the corporate DNA: It is the way we define and do business.
/ C
Focus on charity work with the AIA Foundation Fund – management also involve in activities but staff involvement is not as well coordinated (more from agents)… part of value added benefits for agency recruitment or recognition.
Other than AIA Hong Kong, fragmented activities from AIA Pension and AIG Private Bank  not as coordinated, each doing their own things / B
FCIA Team to mobilize volunteerism amongst agents and staff
The company mainly participated mainly in fund-raising activities for hospital, charitable organization and sports link with charitable causes
Long term supporters of Red Cross and St James Settlement
Strategic Intent: What is your company’s strategy with regard to CSR? Does your company believe that CSR has an impact on reputation? On recruiting and retention? On bottom line performance? Is CSR integrated into your company’s business model?
  1. Legal compliance.
  2. Preserving our reputation and license to operate.
  3. The Business Case: Traditonal ROI criteria.
  4. Business Case plus Value Proposition: In addition to traditional ROI criteria, company values are seen as a key driver for assessing risk and opportunity.
  5. CSR is a part of our business model: A focus on market opportunity and creation.
/ C with some of D
Fund management aspects  e.g. invest in sustainable funds, etc. / More on reputation building and not necessarily compliance (B)
“As a responsible and compassionate member of our corporate community, Fortis Insurance Company (Asia) Limited encourages its employees and agents to participate in community affairs through FICA Volunteer Team. Since its establishment in 2003, the FICA Volunteer Team has reached out to help and care for all members of its community by serving the elderly, children and the mentally challenged etc. FICA has also been an active and long-term supporter of the Hong Kong Red Cross and St. James Settlement”.
Leadership: How engaged are your CEO and other top company leaders about CSR? What type of leadership do they exercise in this area? Are their efforts visible outside the company? Is your company’s Board of Directors active in CSR? I would characterize my company’s leadership as:
  1. Lip service, out of touch.
  2. Supporters: Leaders are in the loop, but not driving it.
  3. Stewards: Leaders are on the top of it.
  4. Champions: Leaders are out in front, leading our industry.
  5. Visionaries: Leaders aim to change the game of the business.
/ B to C – through AIA Foundation in AIA Hong Kong / B – FCIA team is driving the whole thing. Top mgmt only likely to participate in key event but not in every facet.
Operation: Are there people or units with specific responsibilities for CSR activities in your company? Do they exchange information across units? Coordinate actions? Work together? Are there cross-functional committees or groups that address social and environmental performance? Is CSR integrated into the line business operations?
  1. Marginal: Functional heads “ do their own bit.” CSR is fragmented or non-existent.
  2. Functional: There are units with specific CSR related responsibilities, but activity is still mostly siloed.
  3. Cross-functional co-ordination: CSR responsibility is co-coordinated across units.
  4. Aligned: There is vertical buy-in across the company and lines of business are engaged.
  5. Integrated: CSR is driven by the business, and activities cut across and are owned by functions and business units.
/ More of C / B to C - FCIA team is driving it with representation from staff and agency force and functional heads, etc.
Issues Management: How does your company handle social and environmental issues that arise? Are there clear policies on these matters? Effective programs? Goals and measurements? Are CSR issues managed as other vital activities in the company? Is there a proactive approach to issues as opportunities?I would characterize my company’s approach to issues management as:
  1. Defensive: Issues are handled as one-offs.
  2. Reactive: We have programs on paper, but many are not fully implemented.
  3. Responsive: We have operationalized policies and programs on key issues relevant to the company.
  4. Responsible: We have programs along with plans, goals and performance measures on the management issues we face.
  5. Proactive: Plans and actions are ahead of the curve. We anticipate and prepare for emerging issues-both risks and opportunities.
/ Moving from B to C since the compliance issue in 2005 / B – there is no proactive approach for the company probably because of the nature of the business, it is more on defensive and reactive role
Stakeholder Relations: How does your company relate its stakeholders? Does it communicate openly and regularly? Are there good working relationships with stakeholders? A relationship of mutual benefit? A relationship of partnership?I would characterize my company’s approach to stakeholder relation as:
  1. Unilateral: We generally have one-way communication with stakeholders.
  2. Interactive: We generally have two-way communication with stakeholders.
  3. Consultation: We have a relationship of mutual influence, in which stakeholders influence the business and the business influences stakeholders.
  4. Win-Win: We have a shared agenda with stakeholders and we all do our part.
  5. Partnership: We work together with stakeholders on important issues and learn from them as equal partners.
/ B to C / B
Transparency: To what extent does your company communicate about its financial, social and environmental performance? Is there public reporting? Outside verification of performance result?
  1. Flank protection: minimal disclosure
  2. Public relation: Some disclosure, emphasizing good news
  3. Public reporting on citizenship related issues
  4. Full disclosure of goals and results
  5. We seek third party assurance and verification for our reported results
/ A to B / A to B

CUEMBA – Group Project on CSR

Survey on Corporate Social Responsibility

Company: MNC Media Co. (Time Warner) vs. Local Media Co. (PCCW)

Please circle one option that best represents the situation of your company in each of the following questions:

Time Warner / PCCW - NOW
The Six Criteria of Caring Company
Nominator in Hong Kong for 2006/7 / Chi Heng Foundation / Agency for Volunteer Service
Fu Hong Society
Hans Andersen Club Ltd.
Heep Hong Society
Helping Hand
Hong Kong Sheng Kung Hui Welfare Council
The Hong Kong Society for the Aged
Junior Achievement Hong Kong
Oxfam Hong Kong
Playwright Children’s Play Association
QEH Patient Resource Centre
Senior Citizen Home Safety Association
The Salvation Army
1. Volunteering – encourage and support employee volunteering /  / 
2. Family Friendly – provide a family-friendly and gender sensitive environment for employee /  / 
3. Employing Vulnerable – be willing to employ vulnerable group /  / 
4. Partnering – develop partnership projects with the social service sector / 
5. Mentoring – share business expertise with social service organization / 
6. Giving – Donate or give in-kind to social service organization /  / 
Standard Evaluation
CSR Concept: What best describes CSR in your company? How broad is your CSR concept?
  1. Just the Basic: Job, Profit, Taxes.
  2. Functional Focus: Philanthropy, community relations, environmental protection.
  3. Stakeholder engagement and management.
  4. An Integrated Concept: Triple bottom line, with equal importance assigned to economic, social and environmental factors.
  5. Embedded in the corporate DNA: It is the way we define and do business.
/ D
Time Warner’s chairman and CEO, Richard Parsons said in its 2006 Corporate Social Responsibility (CSR) Report that the company is committed to becoming a world-class corporate citizen / C
PCCW is a diversified listed company in Hong Kong with telecommunications services, pay TV services and property business. It adopts a four-pronged approach to promote community services.
Strategic Intent: What is your company’s strategy with regard to CSR? Does your company believe that CSR has an impact on reputation? On recruiting and retention? On bottom line performance? Is CSR integrated into your company’s business model?
  1. Legal compliance.
  2. Preserving our reputation and license to operate.
  3. The Business Case: Traditonal ROI criteria.
  4. Business Case plus Value Proposition: In addition to traditional ROI criteria, company values are seen as a key driver for assessing risk and opportunity.
  5. CSR is a part of our business model: A focus on market opportunity and creation.
/ D
The company’s Standards of Business Conduct, which will be regularly revised and strengthened, applies to all employees of the group. It makes clear the importance to the company of abiding by the law, telling the truth, keeping its promises, putting the needs of shareholders and customers first, and steering well clear of excesses and ethical lapses. The company also highlights the importance of journalistic integrity in news reporting.
Time Warner is committed to conducting its business in an environmentally responsible manner. It aims to conserve natural resources, minimise waste through recycling, encourage energy efficiency and use of renewable energy sources.
It has reduced the weight of the paper of its magazines and use paper produced from Certified Sustainable Forestry (in such forests trees are able to grow back at the same pace at they are cut down).
The company direct funds to support education and the arts. It provides scholarship, funds research, encourages staff to do volunteer work in the education field.
As to global relief efforts, it made donations to assist victims of the Indian Ocean Tsunami 2004 (over USD4.2 mn) and Gulf Coast Hurricanes 2005 (USD5 mn) etc.
The company is committed to becoming an employer of choice to retain, attract and develop the best people. It promotes employee growth via various professional development opportunities. It also provides work/life support such as child care facilities, flexible work arrangements and comprehensive staff benefits. It also hires staff from a diverse culture, which means going beyond race, ethnicity, gender, geographical background and sexual orientation etc. / C
PCCW supported the establishment of the PCCW e-Community Mobile Center and the Senior Citizen IT Centre, which provide free education for parents, children and the elderly and provide support to the Hong KongSchool for the Deaf.
Sponsorship basis
The company provides free hotlines or telecommunication services for charity fund-raising activities initiated by social services organisations like the Community Chest, Tung Wah Group etc. It provides free hotlines for counseling services targeted at students, elderly, emotionally distressed.
In addition, free installation and monthly rental of residential telephone lines will be offered to economically challenged senior citizens to maintain communications with the community.
To promote reduction of waste in the business sector, PCCW is leading the promotion of e-commerce in Hong Kong’s Business Environment Council. It supports material recycling including paper, toner cartrides and copper wire. PCCW staff also offer volunteer support to environmental protection schemes and green organisations.
Leadership: How engaged are your CEO and other top company leaders about CSR? What type of leadership do they exercise in this area? Are their efforts visible outside the company? Is your company’s Board of Directors active in CSR? I would characterize my company’s leadership as:
  1. Lip service, out of touch.
  2. Supporters: Leaders are in the loop, but not driving it.
  3. Stewards: Leaders are on the top of it.
  4. Champions: Leaders are out in front, leading our industry.
  5. Visionaries: Leaders aim to change the game of the business.
/ D
Time Warner has a Corporate Responsibility Office, led by a senior VP, who reports direct to Executive VP of Administration, who in return reports to the chairman. / C
There is no mention about PCCW having any Corporate Responsibility Office, led by a senior executive, in its corporate brochures.
Operation: Are there people or units with specific responsibilities for CSR activities in your company? Do they exchange information across units? Coordinate actions? Work together? Are there cross-functional committees or groups that address social and environmental performance? Is CSR integrated into the line business operations?
  1. Marginal: Functional heads “ do their own bit.” CSR is fragmented or non-existent.
  2. Functional: There are units with specific CSR related responsibilities, but activity is still mostly siloed.
  3. Cross-functional co-ordination: CSR responsibility is co-coordinated across units.
  4. Aligned: There is vertical buy-in across the company and lines of business are engaged.
  5. Integrated: CSR is driven by the business, and activities cut across and are owned by functions and business units.
/ C / C
There is no mention about PCCW having any Corporate Responsibility Office, led by a senior executive, in its corporate brochures.
Issues Management: How does your company handle social and environmental issues that arise? Are there clear policies on these matters? Effective programs? Goals and measurements? Are CSR issues managed as other vital activities in the company? Is there a proactive approach to issues as opportunities?I would characterize my company’s approach to issues management as:
  1. Defensive: Issues are handled as one-offs.
  2. Reactive: We have programs on paper, but many are not fully implemented.
  3. Responsive: We have operationalized policies and programs on key issues relevant to the company.
  4. Responsible: We have programs along with plans, goals and performance measures on the management issues we face.
  5. Proactive: Plans and actions are ahead of the curve. We anticipate and prepare for emerging issues-both risks and opportunities.
/ D / C
Stakeholder Relations: How does your company relate its stakeholders? Does it communicate openly and regularly? Are there good working relationships with stakeholders? A relationship of mutual benefit? A relationship of partnership?I would characterize my company’s approach to stakeholder relation as:
  1. Unilateral: We generally have one-way communication with stakeholders.
  2. Interactive: We generally have two-way communication with stakeholders.
  3. Consultation: We have a relationship of mutual influence, in which stakeholders influence the business and the business influences stakeholders.
  4. Win-Win: We have a shared agenda with stakeholders and we all do our part.
  5. Partnership: We work together with stakeholders on important issues and learn from them as equal partners.
/ C / C
Transparency: To what extent does your company communicate about its financial, social and environmental performance? Is there public reporting? Outside verification of performance result?
  1. Flank protection: minimal disclosure
  2. Public relation: Some disclosure, emphasizing good news
  3. Public reporting on citizenship related issues
  4. Full disclosure of goals and results
  5. We seek third party assurance and verification for our reported results
/ C / C

CUEMBA – Group Project on CSR

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