New | More charitable donations from Hong Kong firms this holiday season
Steady economic growth and market performance has helped Hong Kong companies give more in this year’s festive season as corporate donations are often linked to profitability.
Hang Seng Bank is among the top givers this time. Charitable donations and community sponsorships of the lender this year amounted to HK$26 million, a 20 per cent increase over last year.
“As a measure of our strong ties to the local community, we continue to maintain long-term relationships with organisations that share our commitment to social and environmental enhancement, including The Community Chest of Hong Kong, which has been our close partner for over 25 years,” said Alison Ho Cheuk-wai, head of corporate responsibility at Hang Seng Bank.
The bank’s new donation budget this year covered many youth development and educational programmes, such as working with the Hong Kong Family Welfare society to promote a positive culture for handling conflicts among students and their families. Over 9,000 students and their family members, and teachers received training and attended workshops sponsored by Hang Seng.
The bank also gave HK$1 million to The Community Chest under the stock code charity scheme for its Hang Seng China A Industry Top Index ETF. The stock code donation scheme has gained in popularity of late.
Under the scheme, listing candidates can donate HK$1 million to The Community Chest in exchange for the right to pick the stock codes they prefer rather than go by the ones assigned by the stock exchange.
Hang Seng also donated towards the construction of 800 bio-gas facilities in Yunnan province, providing free and stable energy supply to 3,000 people in rural areas on the mainland.
Timothy Lo, managing director of French private bank CIC Investor Services, said his company also donated more this year than last year.
“We have donated a bit more this year but it is never enough,” he said, adding the firm wants to continue to support the community as it wants to show it is a caring company.
Sun Hung Kai Financial executive director Joseph Tong Tang said his company maintained last year’s donation level.
“The economy is good and the Hang Seng Index has also done well, but these haven’t translated into better profitability for brokerage houses. The market turnover hasn’t gone up substantially this year while the competition pressure has driven brokerage commission rate even lower,” Tong said.
“Companies have to peg their donation targets to profitability. During the tough times, such as the financial crisis in 2008 and 2009, we had to cut down our donation budget. With the market recovering from 2010, we could afford to spend more on donation and maintain a stable donation budget since,” Tong said.
But Michael West, Deutsche Bank’s head of communications, Asia Pacific, said his bank maintains a uniform donation policy.
“Deutsche Bank is deeply committed to maintaining funding of corporate social responsibility activities throughout Asia, including Hong Kong, whether the broader market and economic outlook looks strong or weak. This has certainly been the case throughout the recent economic cycle,” West said.
Claude Haberer, head of Asia wealth management for Swiss private bank Pictet, said his company also has a consistent sponsorship programme for the arts and other charities.
“Our bank puts great emphasis on reliability and stability and therefore we did not reduce our sponsorships during the crisis. Our partners can count on us for the long term,” Haberer said
Hong Kong companies can claim tax deduction for their donations, providing corporate givers an incentive to donate.
