Local firms put profits before social welfare

A six-month study of Hong Kong companies has found only a basic level of awareness of corporate social responsibility, with most firms interested in the concept only if it helps their commercial interests.

The report found Hong Kong companies were 'very good' in terms of ethical treatment towards customers and 'rather good' in terms of environmental protection.

But their performance in promoting employees' welfare was only 'moderate', and their social contribution was 'unsatisfactory'.

The information was gleaned from a survey of 10,094 companies, which revealed that only 23 per cent were aware of the concept of 'corporate social responsibility' (CSR). And just 9 per cent were both aware of the concept and had set up a structure to implement it.

While 76 per cent of companies said they believed it could benefit them in the long run, most efforts were directed towards profitability.

'Companies' actions were mostly done in compliance with the basic ethical norms or legal measures,' said Pang King-chee, chairman of the Committee on the Promotion of Civic Education, which commissioned the survey. 'Beyond that, they practised CSR only when it helped commercial interests.'

Eighty-three per cent of companies interviewed supported commitments on ethical business operations, which include product safety, honesty in provision of price and product information, and quality after service. Eighty-one per cent backed the minimisation of negative environmental, economic and societal impact of business.