In the past, corporate philanthropy was seen by many as about making donations, but today corporate philanthropy leaders and a growing swell of purpose-driven organisations are looking beyond this passive approach and seeking to take a more active role in the long-term health of the communities in which they operate.
Taking centre stage in this new way of thinking are models for creating economic value in a way that also addresses the needs or challenges in society, and which often involves partnerships between organisations in the corporate and social sectors.
It is seen as a win-win model, not only having a positive impact on communities, but also helping businesses reach new markets and customers, and pioneer initiatives that are financially viable and sustainable.
Closer collaboration to drive sustainable impact
As corporations increasingly focus on “business for good”, the traditional roles and practices of business and the non-profit sector are becoming blurred, with organisations working across boundaries to enhance the communities in which they are rooted.
“The role of a business in its community is a critical element of its long-term sustainability,” Aguzin said. “How it engages with its community needs to be a critical part of its own business strategy.”
As corporates increasingly put social responsibility at their core, they have begun to explore innovative new ways to collaborate with the organisations they financially support, acting as allies for change and equipping their partners with the necessary skill set to develop innovative solutions.
Hong Kong Broadband Network (HKBN) is one such example: it mobilises its digital expertise and resources to assist social enterprises with business know-how, through its academy or free, tailor-made consultation workshops. Bonnie Chan, co-owner and associate director, ESG and administration at HKBN, said complex social challenges cannot be solved by one-off philanthropy events, and corporates need to leverage their own strengths to empower social enterprises to drive sustainable solutions. “We have to think about the uniqueness of the social enterprise, as well as the uniqueness of the corporate itself, so together we can build something meaningful.”
The rising popularity of the social enterprise model also highlights the trend for the social sector to become more business-orientated, enabling greater convergence between business and society. In the past 15 years, Hong Kong has seen a significant increase in social enterprises – bodies that apply commercial strategies to solving social problems. The number of social enterprises in Hong Kong has increased from 260 in 2008 to more than 700 today.
GreenPrice is an example of an organisation that uses an innovative commercial strategy to solve a social problem. The social enterprise collects surplus and short-dated food, which it then sells at discounts of up to 50 per cent through its stores. In doing so, it helps tackle the dual problems of food waste and poverty, addressing them in a way that is financially sustainable. This, in turn, also creates new business opportunities for the social enterprise, creating business value as well as societal value.
Connecting business and society
The inaugural HKEX Impact Summit explored many of these important trends and developments, and was one of Hong Kong’s first-ever forums to gather representatives from across government, businesses and the social sector to discuss collaborative opportunities that create greater value for the wider community.
“Developing and enhancing the corporate philanthropy culture in Hong Kong – opening it to new concepts, models and best practices from around the world – requires greater connectivity between stakeholders,” said Laura M Cha, chairman of HKEX, speaking at the summit.
This theme of connectivity is echoed throughout HKEX’s business, be it philanthropy or market trading. As a leading global exchange, at the heart of one of the world’s leading financial centres, HKEX is in a strong position to connect business with the wider community, providing a platform for the corporate and social sectors to facilitate closer partnership.
As a purpose-driven corporate, HKEX has also been on its own journey of discovery. Over 20 years ago, it launched what is now known as the Stock Code for Charity Scheme, which has raised more than HK$1 billion (US$128 million) for charitable causes across Hong Kong.
HKEX’s community engagement and philanthropic impact is continuing to evolve. In 2020, it launched HKEX Foundation – its new dedicated channel for supporting projects focused on financial literacy, poverty relief, diversity and inclusion, and environmental sustainability. Since then it has channelled more than HK$300 million into supporting over 60 projects and benefiting more than 430,000 people in Hong Kong. The foundation aims to establish long-term strategic relationships with charitable partners to drive innovative solutions for a number of the projects it supports, including GreenPrice, which took part in the summit.
HKEX believes its most impactful contribution to Hong Kong is in leveraging its strength as a “superconnector”, continuously bringing stakeholders together.
Financial Secretary Paul Chan, who spoke at the Impact Summit, said ESG is not simply about reporting and compliance, it is also about integrating the “value of doing good for the community” into an organisation’s culture. “That is why the Impact Summit has brought together businesses, NGOs and social enterprises, so that we may inspire each other on values and best practices. Creating sustainable connections between our businesses and our community is the road to better achieving our social objectives.”
