Case study: How BOCHK creates economic value for its stakeholders
BOC Hong Kong (Holdings) Limited is one of the largest listed companies and commercial banking groups in Hong Kong. As a leading commercial and regional bank with deep roots in Hong Kong for over 100 years, BOCHK is committed to undertaking its corporate social responsibilities and delivering greater value for all its stakeholders and the community.
This case study is based on the 2022 Sustainability Report by BOCHK, prepared in accordance with the GRI Standards, that can be found at this link. Through all case studies we aim to demonstrate what CSR/ ESG/ sustainability reporting done responsibly means. Essentially, it means: a) identifying a company’s most important impacts on the environment, economy and society, and b) measuring, managing and changing.
Abstract
In 2022, the economic value distributed by BOCHK reached HK$ 36,603 million. Tweet This! In order to create economic value for its stakeholders BOCHK took action to:
- create economic value for employees
- create economic value for providers of capital
- create economic value for governments
- create economic value for communities
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With this case study you will see:
- Which are the most important impacts (material issues) BOCHK has identified;
- How BOCHK proceeded with stakeholder engagement, and
- What actions were taken by BOCHK to create economic value for its stakeholders
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What are the material issues the company has identified?
In its 2022 Sustainability Report BOCHK identified a range of material issues, such as cyber security, addressing climate risks, financial inclusion, talent acquisition and development. Among these, creating economic value for its stakeholders stands out as a key material issue for BOCHK.
Stakeholder engagement in accordance with the GRI Standards
The Global Reporting Initiative (GRI) defines the Principle of Stakeholder Inclusiveness when identifying material issues (or a company’s most important impacts) as follows:
Stakeholders must be consulted in the process of identifying a company’s most important impacts and their reasonable expectations and interests must be taken into account. This is an important cornerstone for CSR / sustainability reporting done responsibly.
Key stakeholder groups BOCHK engages with:
| Stakeholder Group | Method of engagement |
| Customers
| · Communications with frontline staff and relationship managers · Contact centres, Customer Feedback Line/Mailbox · Online workshops and seminars · BOCHK iService 24-hour video banking service · Transactional Net Promoter Score · BOCHK, BOC Credit Card (International) Limited (BOCCC), BOC Group Life Assurance Company Limited (BOC Life), Official WeChat accounts of BOC Credit Card, BOC Life, BOCHK Research and Southeast Asian entities · Corporate website · Online surveys/interviews |
| Employees | · Employee mobile communication app Enterprise Instant Message (EIM), integrated mobile business platform eWorkplace, department meetings/ online meetings · Staff forums, breakfast meetings, corporate culture and recreational activities · Staff publications, intranet and internal circulars · Performance assessment, staff awards and recognition activities · Chief Executive’s mailbox, staff hotline and mailbox, HR Chatbot · Staff and volunteering activities · Online surveys/interviews |
| Investors and Shareholders | · Annual General Meeting · Corporate communications and announcements · Annual and interim reports · Results briefings, road shows and corporate day events · Company visits, conference calls and video conferences · Annual investor conferences and seminars held by investment banks · Corporate website and social media · Investor relations emails and hotline |
| Suppliers | · Meetings and communication · Due diligence procedures · Online surveys and regular reviews · On-site inspections |
| Community Partners
| · Sponsorships and donations · Post-event evaluation reports · Seminars, forums and sharing sessions · Meetings and communication · Diverse community activities (including volunteer events, tours, exchanges and visits) |
| Media
| · Press conferences, press releases and media interviews · Results announcements, annual and interim reports, corporate website and social media · Media enquiries |
| Professional Institutions | · Representatives on committees of professional bodies · Forums, seminars and talks · Events sponsorship |
| Government and Regulators | · Meetings, daily communication and reports · Representatives on committees of key industry and government bodies · Sponsorship and participation in forums, seminars and talks · Circulars and guidelines of regulatory authorities · On-site visits and inspections |
How stakeholder engagement was made to identify material issues
To identify and prioritise material topics BOCHK engaged with its stakeholders through online surveys, focus group discussions and one-to-one interviews.
What actions were taken by BOCHK to create economic value for its stakeholders?
In its 2022 Sustainability Report BOCHK reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- In 2022, BOCHK paid HK$ 9,946 million for employee wages and benefits.
- Creating economic value for providers of capital
- In 2022, BOCHK paid HK$ 15,737 million to providers of capital.
- Creating economic value for governments
- In 2022, BOCHK paid HK$ 5,427 million to HKSAR government and HK$ 596 million to governments outside Hong Kong.
- Creating economic value for communities
- In 2022, BOCHK spent HK$ 36 million in community investments.
Which GRI Standards and corresponding Sustainable Development Goals (SDGs) have been addressed?
The GRI Standard addressed in this case is: Disclosure 201-1 Direct economic value generated and distributed
Disclosure 201-1 Direct economic value generated and distributed corresponds to:
- Sustainable Development Goal (SDG) 8: Decent Work and Economic Growth
- Targets: 8.1, 8.2
- Sustainable Development Goal (SDG) 9: Industry, Innovation and Infrastructure
- Targets: 9.1, 9.4, 9.5
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References:
This case study is based on published information by BOCHK, located at the link below. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the report’s meaning. If you would like to quote these written sources from the original please revert to the following link:
https://www.bochk.com/dam/bochk/desktop/top/aboutus/esg/report/SustainabilityReport2022_en.pdf
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