Hong Kong business should care about creating value for society

Paul Yip says new thinking about philanthropy suggests – and examples have shown – that companies should not only focus on shareholder interests, as doing good is ultimately good for profit

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Usually, it is the workers who suffer during an economic downturn but, even in good times, the benefits of economic growth are not shared by the community. Photo: AFP

Published: 11:00am, 9 Oct 2016Updated: 7:08pm, 9 Oct 2016

Last month, I attended a Hong Kong Jockey Club forum on “Philanthropy for Better Cities”, which was all about creating shared value. It provided some excellent examples of how business can do well by doing good, a deeper and wider type of corporate social responsibility that involves more than just donating money to charities after making a profit. It is about how businesses can respond to the challenging needs of society and do it together by creating shared values with non-governmental organisations and the community at large. It pushes the boundaries and expands horizons.

There are a number of successful overseas examples of businesses providing support to disadvantaged groups in the community, which in turn can improve the business as well.

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For instance, instead of charging a minimum-balance fee, the National Australia Bank is engaging disadvantaged clients and tailor-making banking services and advice for them. As a result, an additional one million clients, out of a national population of 23 million, are provided with banking services. The banking sector naturally welcomes big clients and rich customers but the National Australia Bank has not lost sight of the community at large. By expanding its client base, it has managed to make a profit and make the community a better place; a win-win situation. This is more a corporate strategy than an act of corporate social responsibility.

This kind of a mindset of running a business has yet to become commonplace in Hong Kong. Sharing value should be incorporated and practised for the betterment of the city.

Under a subsidy scheme, elderly Hongkongers and those with disabilities can travel on public transport here at any time for HK$2 per trip. The government bears the full cost of the subsidy. Photo: Sam Tsang

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To take one example, the government’s scheme to allow the elderly and those with disabilities to travel on public transport at any time for HK$2 a trip aims to help build an inclusive society by encouraging these groups to take part in community activities.