A case study of BOC Hong Kong (Holdings) Limited (BOC) Corporate Social Responsibility and other Ethical considerations Para le Having been operating in Hong Kong for nearly a century, the BOC has been serving Hong Kong well offering wide varieties of financial investment and wealth management services. Para 2 Being one of its major subsidiaries, Bank of China (Hong Kong) Limited is one of the leading listed commercial banks in Hong Kong with 220 branches and over 1,000 self- service machines. BOC's profitability in 2015 has achieved a new high of HK$27 billion with a return on equity of 14.5%. 2 Para 32 Apart from the above financial strength to secure its long-term profits, BOC is always committed to contribute to the sustainable development of the economy, society and environment. As at end of 2014. BOC has employed a total of 14,900 headcounts with staff costs exceeding HK$7 billion. Tax paid amounted to HK$5.6 billion which is considered a direct contribution to the economy Para 42 BOC is nominated as the clearing bank for RMB business in Hong Kong. It has been actively upgrading its banking system to ensure the stable and efficient RMB clearing services in both Hong Kong and overseas so as to encourage global transactions conducted in RMB. Para 52 Besides, all BOC offices have been installed with water-cooled chillers in air conditioning systems and all lightings are replaced by energy saving LED lightings for higher energy efficiency. Also, only electrical appliances bearing "Grade 1" energy label are purchased. e Para 6- Supporting educational programmes in the society is also one of BOC's initiatives. BOC has given out HK$17.6 million of scholarships/bursaries to students studying in local universities, benefiting nearly 2.000 students since 1990.2 Para 7e In recent years, BOC has been actively reducing paper consumptions by encouraging customers to handle banking transactions, e.g. cash withdrawal and security trading, through ATMs, internet and other e-channels. Para 8- BOC has always been supporting charitable activities through fund raising. In 2014, the Community Chest BOCHK Cycling Challenge organized by the Community Chest of Hong Kong has successfully raised HK$8 million for children and youths.e Para 9- In terms of promoting balanced life. BOC plays a crucial role in enhancing work-life balance of its employees by promoting stress-free personal time. A wide range of recreational activities, such as yoga, cooking classes, sports competitions of bowling, basketball, and table tennis are organized. Staff Fun Day is also held once a year, attracting attendance of over 27,000 staff and their families. Para 10- In additions. BOC is committed to development talent in the community by offering valuable opportunities of summer internships to university students. This helps equip them with practical experiences in order to increase their employability and readiness in workplace once they graduate. Para 112 Besides, BOC believes that a safe working environment for employees is important to produce efficient work output. Training classes on fire prevention, occupational health and safety seminars as well as first aid certification programme are organized. In order to build up their awareness on new safety regulations, a special team was formed to continuously monitor the work safety standards. Para 12- To facilitate more accessible banking services to those people with special needs. BOC has installed special ATMs with unique features e.g. the Voice Navigation ATMs, for the blinds. Sloping platforms are also built in branches to facilitate wheelchair access, with the height of keyboards and screens adjusted to fit wheelchair users. e Para 13e As the sponsor of the Green Monday 2013-2015 School Programme. BOC encourages students to follow a vegetarian diet and reduce meat intake. In 2014, the programme attracted 800 participating schools of 600.000 students. The meatless meal order rate has increased by 35.7% to 228,000.- Para 142 Looking ahead, BOC will continue with its main focus on serving community and delivering excellence. On one hand to reaping economic profit. BOC, on the other hand, keeps caring for all members of community and extends its helping arms to those in need. [Source: BOC Hong Kong (Holdings) Limited - CSR Report 2014] Questions Q1. Identify any three BOC's social responsible initiatives, mentioned in the above case, for each of the benefiting areas according to the "Triple Bottom Line theory of corporate social responsibility. (45%) a. Profit b. People C. Planet Q2. Apart those social responsibilities mentioned in part (a) above, suggest and comment any two other ethical issues in workplace, not being mentioned in the above case, that stakeholders of BOC may deserve. (10%) Q3. If you were the Chief Executive Officer of BOC, would you support the continuation of these initiatives? Elaborate, in your own words, any three justifications for or against those initiatives. (15%)