Company with a social conscience

Cimate change, mainly caused by greenhouse gases, is the greatest threat facing the world today, and blame for global warming lies squarely on environmentally irresponsible corporations and governments. The effects of global warming are so well known that even school children are familiar with them.

But there are companies trying to do their bit to clean up their act. For example, 3M put a US$300 million business on hold because it was concerned about the impact of the product's manufacturing process on the environment. In 2001, it temporarily discontinued its Scotchgard range until a new formulation was found that did not leave chemical residue.

This diversified technology company, set up in Minnesota, North America in 1902, has long been a market leader in terms of corporate social responsibility (CSR). It had the foresight to initiate a pollution prevention programme 33 years ago, long before corporate social responsibility became widely discussed in the business community.

Key to the company's commitment to corporate social responsibility is an understanding that it is complementary to its business. The company knows that the success of a brand is increasingly dependent upon how the employer interacts with its workforce, community and environment. It also knows that corporate social responsibility has to be an integral part of its everyday workings.

'We recognise that corporate social responsibility is not a separate initiative from what we do as a business. Of course there is a cost involved, but it adds value to society and eventually it also adds value to our customers, shareholders and employees,' said Jeffrey Xu Jiwei, managing director, 3M Hong Kong. 'Corporate social responsibility is not a goal or a destination for us, it is an ongoing process. It is part of our DNA,' he said.

Mr Xu said that Hong Kong-based companies were starting to realise the importance of corporate social responsibility.

'I do think the whole of society requires companies to do more [in terms of corporate social responsibility] and I would like to see more companies recognise this as a value for their company and for society. But I do see more companies seeing CSR as interrelated to their business and I see more spending, more activities than ever in this area,' he said.

3M has had an office in Hong Kong since 1961 and employs 250 here. As part of its commitment to CSR, it ensures that these employees are familiar with the rules laid out in the Sarbanes-Oxley Act, which was implemented as a result of several high profile corporate scandals in the United States. 3M's employees are obliged to complete an annual online course to keep them up to date with their legal obligations.

But corporate social responsibility is not only a legal obligation. Mr Xu explained that it could be found everywhere in the company, from the decision to allow technical services people 15 per cent of their time free for inspiration, to encourage imagination and give a feeling of freedom to staff, to its ongoing sponsorship of the recycling bins in the Mass Transit Railway stations, to the donation of 200,000 respirators to the Hong Kong government during the 2003 Sars crisis.

CSR also plays a large part in 3M's continuous march towards the development of products and solutions that tie in with trends in society and make life better for people.

The company is developing products to clean water, save energy, reduce noise pollution and clean air, and it pays strict attention to the impact of these products on society and on the environment.

It concentrates on product life-cycle management, disposal procedures and reducing the use of paper and pollutants in the manufacturing process.

Considering the scale of the products produced by the company - more than 60,000 - it is clear that a lack of attention to the environmental impact of its activities would have a significant impact. 'Ninety-nine per cent of people come into contact with 3M products directly or indirectly during their day,' Mr Xu said. 'We are everywhere and so it is important that we commit to corporate social responsibility.'

This corporate social responsibility article runs in the HR Trends column on the last Saturday of each month

Cleaning up

3M is an industry benchmark for pollution prevention

The company sees corporate social responsibility as integral to its business

It consciously develops products to improve society and the environment

Takes part in community events and sponsors environmentally friendly products

3M tries to ensure that its staff are engaged and happy at work

It tries to earn the trust of its customers by behaving in an ethical manner

It is 100 per cent compliant with the Sarbanes-Oxley Act