Corporate Social Responsibility in HSBC

Businesses that practice corporate social responsibility (CSR) hold themselves, their stakeholders, and the general public to higher standards of social accountability. Companies can be aware of the economic, social, and environmental impacts they have on society as a whole by engaging in corporate social responsibility (also known as corporate citizenship). 

Incorporating CSR practices into daily operations indicates that a firm is striving to have a positive impact on the world around it without harming people or the environment.

What did HSBC do and why?

HSBC opened a new 45 storey office in London, and had to bring about 8500 employees from about 20 offices in London  to the new office. Due to this, they had about 3000 tonnes of office furnitures that they had to dispose of. The had the option of disposing them through a landfill which was cheaper, but instead they decided to use a more expensive option which is to partner with Green-works to recycle and give them out to organisations like school, hospital, startups etc, that will need them as a form of corporate social responsibility. They were later sent to Gambia, where hospitals, schools etc made use of them.

What challenges did they encounter?

1. They were committed to local ownership and management which requires a special for incorporation, due to the British colonial regulations, they were required to have their head office in London. The bank’s directors were able to persuade the treasury in London to accept incorporation under a special Hong Kong ordinance.
2. HSBC faced considerable criticisms in October 2003 due its acquisition of 4000 employees in developing nations as part of its global resource restructuring drive. They maintained that it was done in order to remain cost competitive and create jobs in emerging markets.

How did they live the three Ps of CSR?

1. Profit: HSBC Group first responsibility is to be a successful company that satisfies all shareholders interest in the short term and more importantly in the long term. They need to be successful in order to discharge its responsibilities to the social community and environment. They made profit by:

a. Saving Cost of $1.1m from reduced cost of printing account statement by offering     online statements

2. People: in 2004 during HSBC presentation of “Managing for Growth” to investors, it was announced that a key lever for achieving growth was through developing the brand and investing in people. They achieved this by:

a. Supporting large number of local community projects.

b. Employees of the company donated salaries to charity.

c. They organised fund raiser for numerous community projects like education 

d. Using “Coral infantil HSBC” to support children in care homes to boost their     confidence and self worth

e. About 1000 HSBC staff volunteered with Young enterprises, a charity that helps     you people to start their business.

3.    Planet:

a. In 2004 they stopped printing account statements and started offering it online      thereby saving 50 tons of paper which would have been gotten from felling of    trees.

b.In 2006 they were among the first banks to announce its intention of going carbon    neutral.