Keeping an eye on goodness

Traditionally, Hong Kong's small and medium enterprises (SMEs) have viewed corporate social responsibility (CSR) initiatives as mere public relations exercises. The Hong Kong Business Sustainability Index (HKBSI) launched last month may just change that attitude.

The index, the result of a joint study of 40 Hong Kong SMEs with strong track records in CSR, was conducted by the Hong Kong Polytechnic University (PolyU) and the Hong Kong Productivity Council (HKPC). It serves as a CSR performance gauge for local SMEs, measured against a set of six indicators - employees, customers, investors, suppliers, community and the environment.

It also presents SMEs with a CSR-based business model linked to sustainability, says Professor Carlos Lo, head of the research arm of PolyU's management and marketing department.

Lo hopes that the index will motivate SMEs to engage in CSR practices. 'SMEs tend to associate CSR with community service (for image building purposes) but not profit-making,' he says.

'CSR is seen as a cost. The index is a message that an SME can be [profitable] while doing something good for society, customers and staff,' Lo adds.

Speaking at the launch of the index, HKPC executive director Agnes Mak said SMEs could boost their competitiveness by using resources more efficiently, building up good relations with stakeholders, adding value to products and services, strengthening their corporate image, and raising the confidence of banks and investors.