Every country operates within the Earth and our energy useage and actions can leave an impact on the environment.
We need to make conscious efforts towards improving efficiency and reducing the environmental impacts of our actions.
The video shows us that the CO2 in our atmosphere is increasing owing to increased activity and dissemination of power for our consumption. The rise in population and pollution calls for concern and reconsideration.
The video of this session shows that the impacts of climate change can be devastating, from rising sea levels to natural catastrophes. Notwithstanding the Paris Agreement signed by Countries to reduce the emission of CO2, Global Co2 levels are still going up. President Donal Trump also pulled out of the deal and other countries are not complying.
HSBC PLC is one of the largest global banking and financial services organizations which boast of a wide global presence and over 232,000 Employees. Initially incorporated in London (England) but now spread across Europe, Hong Kong, Asia, East Africa, Middle East, North America and South Ameria. Nicknamed the World’s local Bank. They maintain that Morality is as important as earnings growth.
What did HSBC do and why?
HSBC did the following:
They opted (with the collaboration of Green-Works, a non profit organization)to donate 3000 metric tons of office furniture rather than disposing same by a landfill. Even though it cost them 10% more to treat the disposal as a donation. The reason for this decision was to reduce waste and environmental impact. The Further discussion on this is provided below.
What challenges did they encounter?
a. In October 2003 they were critized for attempting to move 4,000 jobs to less developed nations although this criticism was dispelled by the realization that such move will create a positive impact to the local nations.
b. In 2004 they were also criticized by Friends of the Earth (FOE) for funding certain companies accused of destroying rain forests and engaging in human rights violations.
c. They were further linked with other companies for sponsoring schemes to divert rivers and build dams in the Three Gorges Dam in China. Although this was dispelled by explaining that such funding was not directly linked to such project.
How did they live the three Ps of CSR?
The HSBC Lived the three Ps of CSR in the following Manner:
People:
Rather than operate under their British Regulations, they decided to be subject to the regulation Ordinance of the Local State as was seen in Hong Kong.
Furthermore, CSR was made a core part of the HSBC’s growth plan and a Corporate Social Responsibility Committee was established in 2009 (to be headed by Lord Butler).
HSBC established the HSBC Community Philanthropic Program in 1999.
The HSBC Education Trust Fund was established in 2001.
The HSBC Established the Children’s Choire (Coral Infantil HSBC).
The HSBC funded school books, classrom equipment, fees, clothings and supplies for disabled children in Bangladesh, Malaysia and India and Gambia to mention a few
The HSBC maintained its interactions with Stakeholders in CSR related issues.
Planet
In 1992, they became a signatory to the United Nations Environment Program Statement by Financial Institutions on Environmental and Sustainable Development.
They published an environmental policy in 1997.
The Staff engaged in volunteer work in various charities like the UK Educational Charity, Hong, Royal Botanic Garden’s Oriental Gardens construction (to maintain some rare species and promote biodiversity).
The HSBC adopted the Equator Principles in September 2003
By 2006, HSBC also announced its plans to become Carbon Neutral
In May 2004, they released a guideline to regulate their involvement in the forestry sector and dissociated themselves from companies involved in deforestation or activities that endanger natural habitats
Profit.
The HSBC was able to save up to 1,100,000 USD in 2004 due to reduced consumption of paper and efficiency. They were further listed in the Dow Jones Sustainability Good and Ethical Index.
They complied with ethical and sustainable operations and released various reports including the CSR Report of 2003 and also a group Standards Manual.
HSBC engaged in various fund-raising efforts to fund numerous projects. From 1999 – 2004, their voluntary donations to rose from 20,000,000 USD to 70,000,000 USD over the years. these donations are Tax Deductible in most of their areas of operations and can be deducted from the Gross Profit thereby saving their margins and payments to the taxing authorities.
Application / Key Takeaway:
Every firm operates within a community which consists of various stakeholders including the environment. Therefore, their actions can leave an impact on the environment or other stakeholders. Asides from financial donations or contributions, companies need to make conscious efforts towards improving efficiency and reducing the environmental impacts of their actions. this will result in profitability for both the company and other Stakeholders concerned. This justifies the HSBC’s reluctance to dispose their 3000 metric tones of furniture as landfill
From a bigger perspective; The CO2 in our atmosphere is increasing owing to increased activity and dissemination of power for our consumption. The rise in population and pollution calls for concern and reconsideration.
