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HKQAA CSR Index 2013 Report
November 2013
Table of Contents Page
About the Hong Kong Quality Assurance Agency (HKQAA) ......... 3
About Hong Kong CSR Advocate Index ........................................... 4
Executive Summary .............................................................................. 5
Participating Organisations ................................................................ 7
Participating Organisations ................................................................ 8
Analysis of Seven CSR Core Subjects – Organisational Governance .......................................................................................... 12
Analysis of Seven CSR Core Subjects – Human Rights .............. 15
Analysis of Seven CSR Core Subjects – Labour Practices ......... 18
Analysis of Seven CSR Core Subjects – The Environment ......... 21
Analysis of Seven CSR Core Subjects – Fair Operating Practices ............................................................................................................... 24
Analysis of Seven CSR Core Subjects – Consumer Issues ........ 27
Analysis of Seven CSR Core Subjects - Community Involvement and Development ................................................................................ 30
Conclusion ........................................................................................... 33
The Way Forward ................................................................................ 34
Appendix A: CSR Advocate Index Scoring Approach .................. 35
About the Hong Kong Quality Assurance Agency (HKQAA)
The Hong Kong Quality Assurance Agency (HKQAA), a non-profit independent
Conformity Assessment Body (CAB), was established by the Hong Kong
Government Industry Department in 1989. The HKQAA mission is to promote
management excellence to the industry and to deliver world-class, value-added
assessment, certification, benchmarking, verification and training services.
To keep pace with the globaldirection and the changes in customer needs, the
HKQAA is relentless in exploring new opportunities for serving the market. In the past
24 years, not only has the HKQAA increased the number of certificates significantly,
but it has also strengthened the credibility of its services. The HKQAA holds many
accreditations for auditing quality, environmental, occupational health and safety, and
information security management systems, including accreditations from the United
Kingdom Accreditation Service (UKAS), the Hong Kong Accreditation Service (HKAS)
and the China National Accreditation Service (CNAS). For ethical auditing, the
HKQAA is accredited by SAAS for SA 8000, which is recognised by BSCI, among
others, and is approved for social auditing by Tesco (UK).
With over 5,000 certificates spanning various industries, the HKQAA is a leading
CAB in Hong Kong, serving client organisations in Hong Kong, mainland China and
other Asian countries. The headquarters of the HKQAA is located in Hong Kong. The
HKQAA also has offices in, Guangzhou and Shanghai, as well as a representative in
the Beijing.
With the growing concerns of various stakeholders on the environment, workforce
and the community at large, in addition to the ISO 26000 based HKQAA-HSBC CSR
Index launched in 2008, HKQAA also introduced a range of verification or certification
services based on Global Reporting Initiative (GRI) in 2006, SA 8000 Social
Accountability Standard and ISO 14064 for carbon emissions verification in 2007, the
and the Clean Development Mechanism (CDM) to aid the business community in
Hong Kong and China to address the need for sustainability of the society locally and
globally.
In addition to international management tools, we also launched local initiatives to
cater for the specific needs of the local community such as the HKQAA Sustainable
Building Index (HKQAA SBI), the HKQAA-HKJC Carbon Disclosure Platform (CDeP)
and the Barrier Free Accessibility (BFA) Management System Certification in recent
years. In the near future, we will continue offering many more other management
tools to assist organizations to achieve a balanced development in business results
and social responsibility.
About Hong Kong CSR Advocate Index To help far-sighted organisations translate their good intentions into action, in 2008 Hong Kong Quality Assurance Agency (HKQAA) launched the HKQAA CSR Index, with the initial support of the Hongkong and Shanghai Banking Corporation Limited (HSBC). Now run by HKQAA, the Index designed with reference to the ISO 26000 Guidance on Social Responsibility provides quantitative metrics for measuring the maturity of an organisation in managing their social responsibility. The guidance of ISO 26000 was consolidated into 45 recommended CSR practices (Refer to Appendix A: CSR Advocate Index Scoring Approach) under seven core subjects. There are five scoring categories which represent the level of maturity of respective CSR practices as follows: 1 - Starting Phase; 2 - Forming Phase; 3 - Implementing Phase; 4 - Confirming Phase; and 5 - Improving Phase. HKQAA professionals conducted on-site verification to i) interview representatives of the participating organisations to review the system setting; ii) validate the factual evidence of the implementation practices; and iii) confirm the scores of the respective forty-five CSR practices based on the defined scoring criteria. Furthermore, the “Carbon & Energy Management Advocate Sub-Index” under the umbrella of the HKQAA - HSBC CSR Advocate Index has been added since 2011 with the aim of providing more specific and in-depth analysis and opinions of Advocates’ performance related to carbon and energy management which has become rather imperative locally and globally. Such enrichment of the Index provides a new perspective for enhancing the publicity of the Index as a whole.
Executive Summary
In summary, the Hong Kong CSR Advocate Index results over the years, which
represent the overall average score of the participating organisations, were 4.69,
4.65, 4.62, 4.57 and 4.53 in 2013, 2012, 2011, 2010 and 2009 respectively, bearing
in mind that the organisations participating this year are slightly different from those
of the previous years. The average scores of the seven core subjects over the last 5
years are summarised in the chart below. As illustrated, the scores rose slightly this
year demonstrating an improvement in the overall performance of CSR.
4.53
4.74
4.73
4.63
4.87
4.65
4.68
4.55
4.78
4.56
4.46
4.81
4.64
4.58
4.40
4.61
4.29
4.35
4.70
4.65
4.52
3.50 4.00 4.50 5.00
Community Involvement and
Development
Consumer Issues
Fair Operating Practices
The Environment
Labour Practices
Human Rights
Organisational Governance
Average Score of CSR Seven Core Subjects
Average score in 2009
Average score in 2010-2012
Average score in 2013
Average Overall Score in 2013
4.69
Average Score Change Compared to 2010-2012
+1.7%
Average Score Change compared to 2009
+3.5%
These scores represent the
general performance of participants
in corresponding subjects. In 2013,
Labour Practices remained the
highest scoring subject and this
showed organisational commitment
to consider labour needs and
increase their employability.
Unfortunately, scorings of
Consumer Issues as well as
Community Involvement and
Development have set back as
compared to last years’. In general,
participants have to be more
aggressive in responding to
community expectation and
development.
With rising awareness of
sustainable development in Hong
Kong, the average CSR
performance of organisations has
improved simultaneously.
4.00
4.10
4.20
4.30
4.40
4.50
4.60
4.70
4.80
4.90
5.00
Organisational Governance
Human Rights Labour Practices
The Environment
Fair operating Practices
Consumer issues
Community involvement
and development
Average Score of CSR Seven Core Subjects for Private and Public Listed Copanies
Public Listed Companies
Private Companies
All Rights Reserved Page 7
Participating Organisations
In 2013, 26 organisations showing their commitment of social responsibilities
participated in HKQAA CSR advocate index scheme. The list of participating
organisations covers a whole range of government department, education institution,
public listed companies and private companies.
This chart indicates the
company nature of 26
participating organisations.
This year, we had 17 private
companies, 7 public
companies, 1 government
department and 1 education
institution
The participants comprise 14 companies from construction and engineering services sector, 6 companies from service sector, 4 companies from manufacturing sector, 1 government department and 1 education institution.
65%
27%
8%
Distribution of Participated Organisations by the nature of organisation
Private Company
Public Listed Company
Governement and Education Institution
11%
27%
54%
8%
Distribution of Participating Organisations by the Idustrial Sector
Manufacturing
Service
Construction & Engineering Services
Government & Education Institution
All Rights Reserved Page 8
Participating Organisations
Alliance Construction Materials
Limited
Analogue Group of Companies
Café De Coral Holdings Limited
China Overseas Holdings Limited
China State Construction
International Holdings Limited
Chun Lee Engineering Company
Limited
David Decoration Limited
All Rights Reserved Page 9
DrilTech Ground Engineering
Limited
EGL Tours Company Limited
Fuji Xerox (Hong Kong) Limited
GP Batteries International Limited
Hang Seng School of Commerce
and Hang Seng Management
College
Hanison Construction Company
Limited
Hong Kong Trade Development
Council
All Rights Reserved Page 10
Housing Department
Hsin Chong Construction Group
Limited
Jumbo Orient Contracting Limited
Leo Paper Group (Hong Kong)
Limited
MTR Corporation
Shun Yuen Construction Company
Limited
All Rights Reserved Page 11
SOCAM Development Limited
Synergis Management Services
Limited
The Link Management Limited
Tong Kee Engineering Limited
Tsuen Lee Metals and Plastics Toys
Company Limited
Yau Lee Construction Company
Limited
All Rights Reserved Page 12
Analysis of Seven CSR Core Subjects – Organisational Governance
The performance of Organisational Governance has been steadily improving. Most of
the participating organisations made social responsibility an integral part of their
companies’ policies, strategies and operations. CSR awareness programmes were
commonly found in participating organisations. They were more sensitive to the
amendments of laws, ordinances, rules, regulations and relevant international norms.
Code of conducts or ethics, as well as staff guidebook or manual, were commonly
adopted within the organisations so as to define the organisations’ standard of
behaviour.
4.30
4.40
4.50
4.60
4.70
4.80
4.90
5.00
2009 2010 2011 2012 2013
Average Score of Organisational Governance for Different Years
Average Score of Organisational Governance in 2013
4.68
Average Score Change since 2009
+3.56%
All Rights Reserved Page 13
Most of the participating organisations have established two-way communication process with stakeholders between the organisations to understand their stakeholders’ interest. During the course, areas of agreement and disagreement were identified and negotiated to resolve possible conflicts. Aiming to sustain business in a rapidly changing business environment, participating organisations were able to build their corporate image as transparent, open and law-complying.
4.81
4.81
4.69
4.5
4.85
4.46
4.65
4.72
4.56
4.52
4.16
4.72
4.20
4.76
3.5 4.0 4.5 5.0
OG7
OG6
OG5
OG4
OG3
OG2
OG1
Average Score for Organisational Governance
Average score in 2009
Average score in 2010
Average score in 2011
Average score in 2012
Average score in 2013
All Rights Reserved Page 14
Good Practices Observed
This year, some organisations have enhanced their governance structures to oversee their local & overseas operational activities. By taking the initiatives to benchmark with international CSR protocol such as BS8900, participating organisations could methodically assess the maturity of their CSR performance. Also, some of them implemented systematic risk management models to ensure that CSR-related risks were under proper control. Besides introducing new systematic models in operational level, participating organisations developed new strategies to extend their coverage for stakeholder engagement. Activities were held to meet stakeholders’ expectation and identify areas of improvement. Top-management level personnel chaired regular meetings to monitor and review their company CSR performance progress. External consultants or internal compliance units conducted surveys to collect feedback from employees and stakeholders in a systematic approach. The analysis of the responses and subsequent formulation of strategies to act on expectation from stakeholders are appreciated and recommended in driving advancement of CSR performance.
All Rights Reserved Page 15
Analysis of Seven CSR Core Subjects – Human Rights
Most of the participating organisations had developed well-established systems to
prevent engagement of child labour or forced labour. Similar to last year, participating
organisations were well-aware of the discrimination issues. Working opportunities for
vulnerable groups and minorities were provided. Many of the participating
organisations have established different approaches of communication channels with
stakeholders of their organisation in which they allowed the stakeholders to express
their views, particularly in situations of disagreement with organisations’ decisions.
Average Score of Human Rights in 2013
4.65
Average Score Change since 2009
+1.09%
4.30
4.40
4.50
4.60
4.70
4.80
4.90
5.00
2009 2010 2011 2012 2013
Average Score of Human Rights for Different Years
All Rights Reserved Page 16
As revealed by the analysis, the promotion of human rights was found in the
approach of organisation used in preventing from employing child and forced labour,
in which almost all of the participating organisations were endeavouring to avoid
engagement of forced labour and child labour in their businesses. Participating
organisations comply with the legal requirements explicitly laid down by the
government in a very high extent.
4.92
4.69
4.69
4.58
4.35
4.84
4.44
4.88
4.64
4.44
3.5 4.0 4.5 5.0
HR5
HR4
HR3
HR2
HR1
Average Score for Human Rights
Average score in 2009
Average score in 2010
Average score in 2011
Average score in 2012
Average score in 2013
All Rights Reserved Page 17
Good Practices Observed
Similar to previous years, organisations continued their good work to prevent forced or child labours. Well-established systems and guidelines were constantly observed to tackle with this issue. The framework regulated decisions made in the supply chain management or partnership in relations to suppliers and contractors on this issue. This year, handling complaints from employees was considered a major issue for human rights. Some of the participating organisations developed new corporate policies and formed related committees, such as “Whistle-blowing policy” and “Grievance Handling Committee”, in response to employees’ dissatisfaction with strict confidence.
4
4.1
4.2
4.3
4.4
4.5
4.6
4.7
4.8
4.9
5
2009 2010 2011 2012 2013
Average Score of Human Rights for Different Sectors
Manufacturing Sector
Service Sector
Construction Sector
All Rights Reserved Page 18
Analysis of Seven CSR Core Subjects – Labour Practices
Labour Practices scored the highest among the seven core subjects. Participating
organisations in general were showing great concern for labour needs, such as
occupational health and safety, labour relations, staff training and development, etc.
This demonstrates that organisations were paying more attention to the healthy
labour management. More participating organisations carried out measures to ensure
compliance with the Minimum Wage Law as compared to last year. In addition, more
organizations implemented programmes to enhance the productivity, employability
and capacity of employees.
Average Score of Labour Practices in 2013
4.87
Average Score Change since 2009
+3.62%
4.30
4.40
4.50
4.60
4.70
4.80
4.90
5.00
2009 2010 2011 2012 2013
Average Score of Labour Practices for Different Years
All Rights Reserved Page 19
Comparatively, Labour Practices is the most mature amongst the seven core
subjects. Comprehensive staff development programme, health and safety
management system and structured legal compliance mechanism were commonly
found in the participating organisations. Most of the participating organisations
maintained continuous dialogue with their staff for establishing a healthy labour-
management relationship. Many of them have implemented programmes to increase
the capacity and employability of employees.
4.96
4.88
4.88
4.88
4.85
4.73
4.76
4.68
4.72
4.68
4.92
4.44
3.5 4.0 4.5 5.0
LP6
LP5
LP4
LP3
LP2
LP1
Average Score for Labour Practices
Average score in 2009 Average score in 2010 Average score in 2011
All Rights Reserved Page 20
Good Practices Observed
In view of community’s expectation of boosting employability and promoting healthy lifestyle, the number of innovative practices has increased in the participating organisations. Some organisations included child caring service provided by local child care centres into their employee benefits. This caring benefit would help their staff members focus on their own work without worrying much about their children. On the other hand, in-house training and after-work education were funded by most of the organisations in order to equip their staff members with modern job-related knowledge. Periodic directorate visits and company-wide activities demonstrated strong management commitment and provided opportunities to show care and empathy and build closer relationship with frontline staff members. Other employee-care activities, such as work-life balance week, were held to also promote healthy lifestyle.
4
4.1
4.2
4.3
4.4
4.5
4.6
4.7
4.8
4.9
5
2009 2010 2011 2012 2013
Average Score of Labor Practices for Different Sectors
Manufacturing Sector
Service Sector
Construction Sector
All Rights Reserved Page 21
Analysis of Seven CSR Core Subjects – The Environment
Most of the participating organisations were more aware of the environmental issues
and the environment became a common element in organisations’ corporate policy
and strategies. Many of the participating organisations are implementing
programmes to promote the environmental caring culture to vendors, subcontractors
and employees. Environmental awareness programmes, as well as waste
minimisation programmes, were implemented in most of the participating
organisations.
Average Score of The Environment in 2013
4.63
Average Score Change since 2009
+6.44%
4.30
4.40
4.50
4.60
4.70
4.80
4.90
5.00
2009 2010 2011 2012 2013
Average Score of The Environment for Different Years
All Rights Reserved Page 22
Similar to previous years, the environment has become a major topic in corporate
policies and strategies. More participating organisations actively address the concept
of resources efficiency and promote environmental-friendly culture.
Some of them implemented campaigns and measures to encourage energy savings
as well as reduce the emission of greenhouse gases. Stakeholder feedback on
organisations’ environmental behaviours was gathered by surveys and interviews.
4.62
4.34
4.77
4.69
4.73
4.09
3.80
4.48
4.56
4.80
3.5 4.0 4.5 5.0
EN5
EN4
EN3
EN2
EN1
Average Score for The Environment
Average score in 2009
Average score in 2010
Average score in 2011
Average score in 2012
Average score in 2013
All Rights Reserved Page 23
Good Practices Observed
The Environment has been the weakest part among 7 core subjects of CSR over previous years. Resources input in environmental aspect by various organisations did not achieve satisfactory results. However, in this year, situation has turned around and organisations were encouragingly involved in international sustainable development protocol, such as ISO 14040 and green building assessment. Some organisations started to measure their product carbon footprint and import latest technologies from overseas in order to quantify and minimize emissions during production. Most of the participating organisations worked jointly with various local NGOs on environmental friendly and conservation campaigns. Through participating and co-organising events such as “Green Monday” and eco-tour, organisations could arouse the employees and stakeholders’ awareness of green living and lead in the community to combat climate change.
4
4.1
4.2
4.3
4.4
4.5
4.6
4.7
4.8
4.9
5
2009 2010 2011 2012 2013
Average Score of The Environment for Different Sectors
Manufacturing Sector
Service Sector
Construction Sector
All Rights Reserved Page 24
Analysis of Seven CSR Core Subjects – Fair Operating Practices
Most of the participating organisations have developed programmes in relation to
corruption prevention and property rights protection. There were more practices to
incorporate social, ethical and environmental criteria into the purchasing, contracting
and distributing policies. Similar to previous years, more participating organisations
sourced fair trade products and raw materials and engaged accredited fair trade
companies and social enterprises. More participating organisations established plans
for compliance with the upcoming Competition Law.
Average Score of Fair Operating Practices in 2013
4.73
Average Score Change since 2009
+10.26%
4.30
4.40
4.50
4.60
4.70
4.80
4.90
5.00
2009 2010 2011 2012 2013
Average Score of Fair Operating Practices for Different Years
All Rights Reserved Page 25
Participating organisations employed legal consultants to evaluate the organisations’
existing operating practices in order to prevent their engagement in anti-competitive
behaviours. Measures for preventing anti-competitive behaviours and practices to
incorporate social, ethical, environmental and gender equality criteria in purchasing
activities are found in some of the participating organisations.
4.65
4.69
4.73
4.85
4.64
4.08
4.00
4.44
3.5 4.0 4.5 5.0
FOP4
FOP3
FOP2
FOP1
Average Score for Fair Operating Practices
Average score in 2009
Average score in 2010
Average score in 2011
Average score in 2012
Average score in 2013
All Rights Reserved Page 26
Good Practices Observed
In last few years, policies and structures of organisations for anti-corruption and property right protection have continuously been improved. Most of the participating organisations have implemented proper mechanism against corruption and to protect property right. Instead of only focusing on self-improvement, some of them also took the lead to develop a platform among the peers to share their CSR experiences and engage their business partners to reinforce the awareness of economic, health, safety and equal opportunity. In view of the sustainability of the industry and community, supply chain and stakeholder management plays a key role in driving improvement. For example, some of them held the first industry sustainable development symposium in order to share the idea of corporate social responsibility and gather thoughts and opinions from their industry sectors.
4
4.1
4.2
4.3
4.4
4.5
4.6
4.7
4.8
4.9
5
2009 2010 2011 2012 2013
Average Score of Fair Operating Practices for Different Sectors
Manufacturing Sector
Service Sector
Construction Sector
All Rights Reserved Page 27
Analysis of Seven CSR Core Subjects – Consumer Issues
Similar to previous years, participants focused on addressing consumers’
expectations and needs. The participating organisation were more conscious of
taking the consideration of potential impacts of the services and/or products to
consumer health, the society and the environment throughout their life cycle into the
development of services and products. Among the participating organisations, ISO
9001 certified quality management system was commonly adopted in order to
establish mature customer service management systems. Participating organisations
were actively enhancing consumers’ awareness of sustainable consumption by
providing instructions and education to consumers.
Average Score of Consumer Issues in 2013
4.74
Average Score Change since 2009
+2.82%
4.30
4.40
4.50
4.60
4.70
4.80
4.90
5.00
2009 2010 2011 2012 2013
Average Score of Consumer Issues for Different Years
All Rights Reserved Page 28
Similar to previous years, the participating organisations are focused to address
consumers’ expectations and needs. Participating organisations actively enhanced
consumers’ awareness of sustainable consumption by providing instructions and
education to consumers. Due to the raising concerns of organisations’
responsiveness on social responsibility issues, more consumer engagement
programmes were implemented.
4.81
4.65
4.73
4.88
4.62
4.77
4.96
4.8
4.28
4.72
4.80
4.96
4.30
4.57
4.64
4.60
3.5 4.0 4.5 5.0
CI8
CI7
CI6
CI5
CI4
CI3
CI2
CI1
Average Score for Consumer Issues
Average score in 2009
Average score in 2010
Average score in 2011
Average score in 2012
Average score in 2013
All Rights Reserved Page 29
Good Practices Observed
Nowadays, information security is getting more and more important around the world. In order to demonstrate commitment of quality information security, some of the participating organisations have implemented the ISO 27001 Information Security Management. With reference to ISO 27001, they could identify and control the information risk with preventive action in a high confidence level. For better disclosure and stakeholder engagement, some organisations added more language options and barrier-free versions to their websites. The improvements which were appreciated and recognized by government generally increased the website usability and message deliverability for their customers. In addition, their websites were not only awarded by Web Accessibility Recognition Scheme but also positively influence their industries and the community.
4
4.1
4.2
4.3
4.4
4.5
4.6
4.7
4.8
4.9
5
2009 2010 2011 2012 2013
Average Score of Consumer Issues for Different Sectors
Manufacturing Sector
Service Sector
Construction Sector
All Rights Reserved Page 30
Analysis of Seven CSR Core Subjects - Community Involvement and Development
This average score for Community and Involvement and Development results from
the assessment on participants’ community support and volunteerism. Over the past
few years, philanthropy was the common approach towards community development.
Some participating organisations showed their commitment to support community
development by organising donation and fund-raising activities for vulnerable groups.
4.30
4.40
4.50
4.60
4.70
4.80
4.90
5.00
2009 2010 2011 2012 2013
Ave
rage
Sco
re
Average Score of Community Involvement and Development for Different Years
Average Score of Community Involvement and Development in 2013
4.53
Average Score Change since 2009
+2.96%
All Rights Reserved Page 31
The overall result of this subject in 2013 indicated a downward trend when compared
to the score in 2012. The conservation and protection heritage was a relatively least
mature practice among all under this core element. However, philanthropy was a
common practice towards community development with vulnerable group assistance
and caring programmes being in place. Promotion of healthy lifestyles was also
emphasised by most of the participating organisations.
4.35
4.58
4.62
4.69
4.42
4.36
4.56
4.32
4.60
4.17
3.5 4.0 4.5 5.0
CID5
CID4
CID3
CID2
CID1
Average Score for Community Involvement and Development
Average score in 2009
Average score in 2010
Average score in 2011
Average score in 2012
Average score in 2013
All Rights Reserved Page 32
Good Practices Observed
Despite the financial support for community development by majority of the participating organisations, some of them took a huge step to go beyond money and offered invaluable opportunities to the needy people in the community. Last year, there were more career opportunities offered by organisations to underprivileged groups and it would be a platform to elevate their confidence by involving and contributing to our community. For better equipping our young generation, organisations took initiatives to cooperate with different local parties and set up industry-specified pilot training programs for teenagers. Working experience and job-related knowledge were enhanced for participating youth upon completion of these courses. One of the participating organisations co-organised a summer camp with a local university targeting employees’ children. The university students treasured this opportunities to practically apply their knowledge and teach children who were also able to learn and grow during summer break.
4
4.1
4.2
4.3
4.4
4.5
4.6
4.7
4.8
4.9
5
2009 2010 2011 2012 2013
Average Score of Community Involvement and Development for Different Sectors
Manufacturing Sector
Service Sector
Construction Sector
All Rights Reserved Page 33
Conclusion HKQAA CSR Report 2013 marks the fifth consecutive year of promoting corporate social responsibility and quantifying performance of participating organisations in Hong Kong. Aiming to measure and improve the CSR performance, the index was launched firstly in 2008. Over the past 5 years, overall performance of participants has improved continually and encouragingly. Compared to the initial score measured in 2009, the overall score of seven core subjects recorded an increase of 3.5% and also positive change in every following year. Participants are more aware of stakeholders ‘expectations and competitive advantages brought by enhancement of CSR. There are different performance indicators observed and attributed to organisational promotion of corporate social responsibility. For Organisational Governance: The operational efficiency was generally increased along with advanced improvement of organisational governance. For Human Rights: The number of discrimination against sexual, racial and others dropped significantly among the participants. For Labour Practices: Staff morale, sense of belonging and responsibility and job satisfaction of staff members were improved resulting and reflecting in lower staff turnover rate. For The Environment: Participating organisations were benefited from reduction of energy costs and carbon emissions. For Fair Operating Practices: Development of a fair, open platform for suppliers and vendors attracted more bids of contracts and as a result reduced the costs of projects. For Consumer Issues: Participants generally suggest that HKQAA CSR Index helping them to build up a positive brand image and enhance customer satisfaction. For Community Involvement and Development: Business opportunities were explored in progress of involving conservation campaigns organised by various NGOs.
All Rights Reserved Page 34
The Way Forward We are pleased to announce that the Hang Seng Indexes Company Limited (HSIL) engaged the Hong Kong Quality Assurance Agency (HKQAA) to provide the sustainability rating and research services and enable HSIL to develop and maintain the Hang Seng Corporate Sustainability Indexes (http://www.hsi.com.hk/) which include a series of financial indexes and sub-indexes for the purpose of tracking and benchmarking the performance of corporate sustainability-driven listed companies in HKSAR and PRC. More than 700 Hong Kong and Mainland listed companies will be assessed by HKQAA proprietary sustainability performance assessment methodology which is based on ISO 26000 and GRI G4. At the same time, as HKQAA CSR Index enters the fifth year, with high anticipation, we will roll out an advanced version of Hong Kong CSR Advocate Index in following year. This advanced version and the Hang Seng Corporate Sustainability Indexes rating and research will be based on the same HKQAA proprietary sustainability performance assessment methodology and thus enable the HKQAA CSR Index participants to benchmark themselves with more than 700 listed companies in HKSAR and PRC on their CSR and sustainability performance.
All Rights Reserved Page 35
Appendix A: CSR Advocate Index Scoring Approach
The 45 CSR Practices
The criteria of the Hong Kong CSR Advocate Index were developed based on the
guidance and principles provided by ISO 26000:2010. The guidance of ISO
26000:2010 was consolidated into 45 recommended CSR practices under seven
core subjects as shown below.
CSR Core
Subjects Recommended CSR Practices
Organisational
Governance
OG1 Organisation should set its direction by making social
responsibility an integral part of its policies, strategies
and operations.
OG2 Organisation should establish programmes to raise
awareness and build competency in social responsibility
in the organisation.
OG3 Organisation should be aware of applicable laws and
regulations, as well as informing those within the
organisation responsible for observing these laws and
regulations to ensure that they are observed.
OG4 Organisation should disclose its policies, decisions and
activities about their known and likely impacts on
society and the environment.
OG5 Organisation should define its standards of ethical
behaviour with reference to available international
norms.
OG6 Organisation should develop governance structures that
help to promote ethical conduct within the organisation
and in its interactions with others.
OG7 Organisation should establish a two-way
communication mechanism for stakeholder interests, as
well as assisting in identifying areas of agreement and
disagreement and negotiating to resolve possible
conflicts.
Human Rights
HR1 Organisation should prevent the abuse of human rights
resulting from the actions of any entities or persons
whose activities are significantly linked to those of the
organisation.
All Rights Reserved Page 36
HR2 Organisation should establish a transparent and
independent governance structure to ensure that no
party can interfere with the fair conduct of a particular
grievance process.
HR3 Organisation should provide stakeholders with channels
to freely express their views, even in situations of
disagreement with organisational decisions.
HR4 Organisation should ensure that it does not discriminate
against employees, partners, customers, stakeholders,
members and anyone else that the organisation has
any contact with or can influence.
HR5 Organisation should ensure no engagement with forced
labour or child labour.
Labour
Practices
LP1 Organisation should encourage the organisations in its
supply chain to meet legal labour requirements.
LP2 Organisation should ensure that the conditions of its
work comply with national laws and regulations.
LP3 Organisation should establish dialogue with staff
members to establish healthy labour-management
relations.
LP4 Organisation should implement measures to protect
employees from health risks and adopt an
occupational environment that meets the physiological
and psychological needs of employees.
LP5 Organisation should promote an occupational health
and safety culture for employees and contractors.
LP6 Organisation should implement programmes to
increase the capacity and employability of employees.
The
Environment
EN1 Organisation should implement measures to prevent
pollution and minimise waste.
EN2 Organisation should promote an environmental-caring
culture to employees and contractors.
EN3 Organisation should implement resource efficiency
measures to reduce its use of energy, water and other
materials.
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EN4 Organisation should implement measures to reduce
Greenhouse Gas (GHG) emissions associated with its
activities, products and services.
EN4.1 Organisation should demonstrate its commitment via
policy, strategy, improvement objectives and targets,
resource allocation, among others. to support the
energy management system and to continually
improve its effectiveness.
EN4.2 Organisation should develop, record and maintain an
energy review and establish an energy baseline.
EN4.3 Organisation should establish criteria for effective
operation and maintenance of significant energy use.
EN4.4
Organisation should consider energy performance
improvement opportunities in the design of new,
modified and renovated facilities, equipment, systems
and processes, and support the purchase of energy
efficient products and services.
EN4.5 Organisation should implement measures to reduce
Greenhouse Gas (GHG) emissions associated with its
activities, products and services.
EN5 Organisation should identify potentially adverse
impacts on the ecosystem and take measures to
eliminate or minimise these impacts.
Fair
Operating
Practices
FO1 Organisation should develop and implement
programmes to prevent corruption.
FO2 Organisation should prevent engaging in anti-
competitive behaviour.
FO3 Organisation should incorporate social, ethical,
environmental and gender equality criteria in its
purchasing, distributing and contracting policies.
FO4 Organisation should develop and implement
programmes to protect property rights.
Consumer
Issues
CI1 Organisation should ensure no unfair or misleading
marketing and information is delivered to customers or
consumers.
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CI2 Organisation should ensure that consumers are aware
of their rights and responsibilities when products and
services are delivered.
CI3 Organisation should ensure that its products and
services will not be inherently harmful to consumers'
health.
CI4 Organisation shall provide customers with socially and
environmentally beneficial products and services that
are able to reduce respective adverse impacts
throughout their lifecycle.
CI5 Organisation should review complaints and take action
to prevent recurrence.
CI6 Organisation should implement measures to resolve
disputes and enhance customer satisfaction.
CI7 Organisation should implement measures to protect
consumers’ data and privacy.
CI8 Organisation should educate customers or consumers
in order to enhance their understanding of the product
and awareness of sustainable consumption.
Community
Involvement
And
Development
CID1 Organisation should help to conserve and protect
heritage, especially where the organisation's operation
has an impact on it.
CID2 Organisation should contribute to programmes that
provide assistance or other necessities to vulnerable
and low-income groups.
CID3 Organisation should participate in skills development
for the organisations in its supply chain in the
community in which they operate.
CID4 Organisation should encourage healthy lifestyles in the
community.
CID5 Organisation should contribute to the development of
the community in which they operate.
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Scoring Approach
The following scoring approach is applied to evaluate the organisation’s system
maturity in its CSR performance. There are five scoring categories representing the
level of maturity of the recommended CSR practices: 1 – Starting Phase; 2 –
Forming Phase; 3 – Implementing Phase; 4 – Confirming Phase; and 5 – Improving
Phase.
HKQAA professionals conducted on-site verification to i) interview the
representatives of the participating organisations to review the system settings; ii)
validate the factual evidence of the implementation practices; and iii) confirm the
scores of the respective 45 CSR practices based on the defined scoring criteria*. The
detailed scoring criteria of the 45 CSR practices have been defined in the HKQAA-
HSBC Scoring Handbook.
Scoring Category General Scoring Criteria
1 – Starting Phase
Organisation does not take steps to develop
programmes or control measures to realise the
recommended practice.
2 – Forming Phase
(i) The programmes or control measures are under
development; or
(ii) The programmes or control measures have been
established but without full implementation; or
(iii) The programmes or control measures are
implemented on an ad-hoc basis that lack advance
planning.
3 – Implementing
Phase
Organisation has established programmes or control
measures to realise the recommended practice.
The programmes or control measures have been fully
implemented with advance planning.
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4 – Confirming Phase
Organisation has established programmes or control
measures to realise the recommended practice.
The programmes or control measures have been fully
implemented with advance planning.
Information gathering or risk analysis is conducted to
gather relevant information to confirm the effectiveness
of the implemented practice.
Stakeholders are invited to engage in the programmes.
5 – Improving Phase
Organisation has established programmes or control
measures to realise the recommended practice.
The programme or control measures have been fully
implemented with advance planning.
Information gathering or risk analysis is conducted to
gather relevant information to confirm the effectiveness
of the implemented practice.
Stakeholders are invited to engage in the programmes.
There is a review of the implemented programmes for
identifying improvement areas.
* The average score of each subject is calculated based on the “rounded down”
averages (to two significant figures) of the participating organisations.
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Benchmarking Process
Step 1: Self-evaluation
The participating organisation conducted a self-evaluation based on the scoring
criteria for the 40 recommended CSR practices using a self-assessment scoring
sheet with supporting evidence for HKQAA’s review and comments.
Step 2: On-site Verification
The HKQAA conducted an on-site verification of the objective evidence, reached an
agreement with the participating organisation about the scores for individual
recommended CSR practices and communicated with the organisation’s
representative to identify further improvement areas.
Step 3: Verification Reporting
The HKQAA prepared a report to confirm the scores for the 45 recommended CSR
practices and provided recommendations for improving the organisation’s systems to
pursue better CSR performance.
Step 4: Benchmarking Reporting
The scores for individual organisations were analysed. Based on the analysis, the
HKQAA prepared a report to benchmark the organisation’s scores against other
participating organisations.
Information Security and Confidentiality
All of the information collected in the verification exercise, including the agreed
scores of recommended CSR practices, was stored in the HKQAA’s dedicated
computer system and the HKQAA has kept it strictly confidential. Comprehensive
information security procedures were implemented to protect the information related
to the participating organisations.
Quality Assurance
Internal quality assurance procedures were implemented to ensure quality of the
verification, research and analysis processes.
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Hong Kong 香港 Tel: (電話):(852) 2202 9111
Fax: (傳真):(852) 2202 9222
Email: (電郵):[email protected]
Website: (網址):www.hkqaa.org
Shanghai 上海
HKQAA Certification (Shanghai) Ltd 標準認證服務(上海)有限公司
Tel: (電話):(86 21) 6876 9911
Fax: (傳真):(86 21) 6876 9922
Email: (電郵):[email protected]
Guangzhou 廣州
HKQAA Certification (Shanghai) Ltd Guangzhou Branch
標準認證服務(上海)有限公司
廣州分公司
Tel: (電話):(86 20) 8383 3777
Fax: (傳真):(86 20) 8382 3066
Email: (電郵):[email protected]
Disclaimer: All information contained herein is provided to the respective participating companies for reference only. Hong Kong Quality Assurance Agency takes no responsibility for the contents of this report, makes no warranty or representation as to its accuracy, completeness or reliability and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this report.
© 2013 Hong Kong Quality Assurance Agency The Hong Kong Quality Assurance Agency owns the copyright and other intellectual property rights in this report. All rights of the Hong Kong Quality Assurance Agency are hereby reserved. No part of this document may be reproduced or transmitted in any form or by any means, including photocopying and recording, without the written permission of the Hong Kong Quality Assurance Agency. Such written permission must also be obtained before any part of this document is stored in a retrieval system of any nature.