Library Newsletter Issue 10 - Corporate Social Responsibility
December 2003

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IN THIS ISSUE

- Message from the Library
- Upcoming Events
- Topic of the Month - Corporate Social Responsibility
- Book Recommendation - Corporate Social Responsibility
- Books for Grassroots Organizations


MESSAGE FROM THE LIBRARY
Grand Opening of Creativity & Innovation Resource Centre: The Creativity and Innovation Resource Centre (CIRC), which has just opened since Nov 27, 2003, is a joint project of Creative Initiatives Foundation and Leisure and Cultural Services Department.  Housed on the 10th Floor of City Hall Public Library, CIRC contains more than 1,500 books and journals and is Asia¡¦s largest publicly accessible collection of resources on the subject of creativity and innovation. The collection comprises a vast knowledge base of materials of interest to anyone searching to learn more about creativity, enhancing his or her own creative abilities, teaching creative problem solving skills to others, managing change or creating the future.

For details, please visit the website: http://www.creative-initiatives.org/CIRC.
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UPCOMING EVENTS
FREE VIDEO SHOW

The Creative Spirit
(Ambrose Video Publishing, Inc./ In English without subtitles)
To celebrate the opening of the Creativity and Innovation Resource Centre and to give NGOs an inspiring and entertaining look at creativity, we are going to show the acclaimed video series ¡§The Creative Spirit¡¨ in the NGO Library during December.

This series blends animation, original music and vivid on-location shooting to capture this emerging spirit of innovation and creativity. Through observation of creative people and places, we discover that creativity is not the domain of genius -- it belongs to and is important to all of us.

Each program is independent and you can choose the topic you are interested.
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Program 1: Inside Creativity
This program takes us inside the creative mind to explore what creativity really is and what causes it. A Jazz musician, an animator, a business school professor, a designer and more, all demonstrate and share their creative ¡§secrets¡¨.
Date: December 11, 2003 (Thursday)

Time:

6:30-7:30pm
Program 2: The Creative Spirit at Work
A look at creativity in the global workplace. The program takes us to visit companies in Europe, the U.S. and Japan to learn how businesses are using innovative programs to enhance the creative output of their people.
Date: December 17, 2003  (Wednesday)

Time:

6:30-7:30pm
Program 3: The Creative Community
This program is about creativity as a way of caring for others¡Kin the community and around the world¡K Today¡¦s complex social and environmental problems demand creative solutions. This program is particular valuable for NGOs to understand how creative approaches to difficult issues can and do make a difference.
Date: December 18, 2003 (Thursday)

Time:

6:30-7:30pm

Events Details
Venue: Creative Initiatives NGO Resource Library
Email: ngolibrary@creative-initiatives.org
Enquiry/Reservation: 2179 2727


FREE ADMISSION FOR ALL EVENTS
Please reserve your seats now!
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TOPIC OF THE MONTH - CORPORATE SOCIAL RESPONSIBILITY
(The editors would like to thank Ms Shalini Mahtani, CEO, Community Business, in preparing 
this featured article on Corporate Social Responsibility.) 


What is Corporate Social Responsibility?

The positive impact of a company on the wider community is known as its ¡§Corporate Social responsibility¡¨ (CSR). There is no standard definition of CSR, but one commonly used definition is:

¡§The continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large.¡¨(1)

Because there is no single accepted definition of CSR there is no commonly accepted classification of its main components. The World Bank(2) includes the following as components of CSR:
1. Environment
2. Labour issues
3. Human Rights
4. Community Involvement
5. Business standards
6. Marketplace

In a broader sense, CSR also covers:
7. Enterprise and economic development
8. Health protection
9. Education and Leadership Development
10. Human Disaster Relief 

Many companies in Hong Kong think that Community Involvement, and specifically ¡§charitable giving¡¨, is synonymous with being socially responsible. This is wrong. Community Involvement is only one component of CSR. 

To illustrate this, take a hypothetical Hong Kong company that makes large cash donations to charities. This same company may discriminate against pregnant women in the workplace, insist its staff work unreasonably long hours, exploit its labour force in factories in China and use bribery and corruption to achieve business objectives. This company is clearly not socially responsible

Why are businesses concerned with CSR?

Leading companies globally have shown that when CSR is undertaken strategically it can have significant benefits to the company including building business, people and reputation. For specific company examples, please refer to the upcoming handbook for companies in Hong Kong: ¡§Corporate Community Investment; Getting Started¡¨  to be published by Community Business, which has an entire section on business benefits. Please visit the Community Business website (www.communitybusiness.org.hk) in mid December to download this publication.

Most companies in Hong Kong departmentalise CSR, generally to the public relations department, rather than truly integrating CSR into business units so that it is at the core of all business decisions. 

Developments in Hong Kong

There are a number of developments in Hong Kong that illustrate the necessity for companies to embrace CSR:
  • Hong Kong now has six socially responsible investment (SRI¡¦s) funds for sale(3). SRI¡¦s are mutual funds that invest in companies that are screened on the basis of ¡§sustainability¡¨ which includes economic, social and environmental criteria. In USA, 1 in 8 US dollars is directed to SRI¡¦s. Companies that do not address their social responsibility will miss out on this pool of funding from socially conscious investors who are concerned with business sustainability in addition to profitability. Companies in Hong Kong in particular that generate funds from overseas investors, are likely to be penalised for not addressing CSR(4).
  • 38% of consumers in Hong Kong rate environmental and social indicators among the top three factors in making purchases, along with quality and price(5). As consumers become more conscious of environmental and social issues, this percentage is likely to rise. 
  • Public trust of NGO¡¦s is far greater than that of companies. A Gallop Poll conducted in 2002 in 26 countries covering 1.4 billion people, including individuals in Hong Kong, found that the global public has the lowest levels of trust of global companies, local companies and government and the highest levels of trust for armed forces, NGO¡¦s and the education sector. Companies seeking to gain public trust will need to actively engage the NGO sector in dialogue. 

In addition, there is small but growing industry of CSR professionals in Hong Kong with NGO¡¦s, private companies and academic institutions focused on issues of CSR, sustainability and governance. This industry is likely to continue to grow as companies in Hong Kong, like in other countries in the world, begin to see CSR not a matter of choice but a fundamental part of conducting business. 


Community Business
(www.communitybusiness.org.hk)
A unique non-profit organization that leads, supports and inspires businesses in Hong Kong to continually improve their positive impact on people and communities.

If you have any questions, please feel free to email Shalini at shalini@communitybusiness.org.hk.

Footnotes:

(1) This definition was developed in 1998 by the World Business Council for Sustainable Development. United Nations, ¡§Corporate Social Responsibility and Sustainability Competitiveness,¡¨ Sustainability Reporter Website, www.sirisdata.com
(2) From CSR course by the World Bank
(3) From www.asria.org
(4) More companies are producing ¡§CSR¡¨ reports or ¡¥Sustainability Reports¡¨ 
(5) J.C.K. Lam, S Saluhuddin and CS Tsoi, ¡§Corporate Governance Programme, University of Hong Kong, March 2003.  Available under http://web.hku.hk/~cegp/image/publications/CGReport.pdf
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BOOK RECOMMENDATION - CORPORATE SOCIAL RESPONSIBILITY
(All books are available for reading in our Library)
1. Corporate Citizenship: Successful strategies for responsible companies
by Malcolm McIntosh, Deborah Leipziger, Keith Jones, Gill Coleman
Library Call No.: 658.408 C67
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This book outlines the social responsibility issues facing all organizations. It contains case studies of companies that have managed to work through the challenges, and come up with innovative and visionary solutions.  The book also describes how international companies such as Levis, Toys-R-Us, Nike, McDonalds, Reebok and Sony have gained competitive edge by putting corporate citizenship at the heart of corporate strategy.

2. Corporate Community Relations: The Principle of the Neighbor of Choice
by Edmund M. Burke
Library Call No.: 658.408 B87
¡@ The author illustrates how a company¡¦s community reputation also affects the behaviour of consumers and employees. Burke also describes strategies that enable companies to build trust in order to be positioned positively in the community. This is an excellent book that will help companies focus their business on strong relationship with the community they live in.
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BOOKS FOR GRASSROOTS ORGANIZATIONS
(All books are available for reading in our Library)
Raise More Money: The Best of the Grassroots Fundraising Journal
by Kim Klein and Stephanie Roth
Library Call No.: 658.15224 R35
¡@ This book offers small nonprofit organizations a wealth of tips, strategies, and guidance on how to raise money from their communities and develop long-term financial stability.
Grassroots Grants
by Andy Robinson
Library Call No.: 658.15224 R62
¡@ This book will give you the skills you need to raise money from grants. It also includes four complete proposals, plus suggestions from foundation staff members who fund groups working for social justice, human rights and environmental conservation.
  Grassroots and Nonprofit Leadership: A Guide for Organizations in Changing Times
by Berit M. Lakey, George Lakey, Rod Napier, Janice M. Robinson
Library Call No. 658.048 G72
¡@ This book weaves together theory, experience and context to help leaders deal creatively and concretely with the full range of organizational issues. It is a practical tool kit, which also clarifies the nature of power and leadership, the stages of social movements, and the social environment in which organization exist.
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Tel.: (852) 2179 2727
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Email: ngolibrary@creative-initiatives.org
Visit our website: http://www.creative-initiatives.org/ngolibrary
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Editing / production of this e-newsletter by community connectors 
[contact us at connectors@netvigator.com]
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