Hang Seng volunteers help students learn English in Shamshuipo Kaifong Welfare Association Primary School. Photo: Edward Wong
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https://scmp.com/news/hong-kong/economy/article/1885695/hong-kong-companies-lagging-behind-corporate-social Hong Kong economy
Hong Kong companies 'lagging behind on corporate social responsibility'
Firms can learn from counterparts in Europe and US, according to new Polytechnic University index
Volunteers help cut the hair of elderly hosts by Federation of Trade Unions. Photo: Edward Wong
Hong Kong-listed companies lag behind European and US counterparts in developing corporate social responsibility, according to a new index developed by a Polytechnic University academic.
The Hong Kong Business Sustainability Index, launched yesterday by the university's department of management and marketing, measured how 50 Hang Seng Index constituent companies performed in terms of social responsibility.
On a scale of 100 points, researchers rated companies' performance based on their values, management structure, projects and the impact of their efforts.
The 50 companies scored an average of 41.7 points. The mean score of the top 20 companies was 57.25 points, a level categorised as the "learner" stage.
The top 20 included Bank of China (Hong Kong), Cathay Pacific, China Mobile, HSBC, CLP, Hong Kong Exchanges and Clearing, the MTR Corporation and the Link Reit.
Researchers studied the 50 companies' sustainability and annual reports between May and August.
Hong Kong firms lag behind leading companies in Europe and the United States, according to management and marketing department head Professor Carlos Lo Wing-hung, who developed the index.
Lo said the results would be sent to companies with the aim of helping them draw up and implement strategies to improve their social responsibility.
Scores and rankings for individual companies will not be made public, initially at least. Lo said the index would be compiled and updated annually to track firms' ongoing performance.
Out of the 50 companies, 25 have their core businesses in Hong Kong. Their average score is 49.7, higher than the 35.2 average for the remaining 25 firms which have their core businesses on the mainland. The scores assessed their social responsibility performance where their core business was located.
Lo said business sustainability had become increasingly important from a stakeholder's perspective. "The fundamental idea is that enterprises that are responsible and caring towards their stakeholder groups in the process of doing business are more likely than non-responsible enterprises to sustain the lifespan of their operation," he said.
For example, more responsible companies have greater trust from clients, investors and governments, thereby giving them a competitive edge, Lo said.