Corporate Social Responsibility of Leading Property Companies in Hong Kong

1619 Words 7 Pages
Leading Property Companies in Hong Kong, such as San Hung Kai Properties and Henderson Land Development Company Ltd are one of the sectors that are most influenced and profitable in this city. Holding a majority of lands, buildings and much capital, these firms have been a major concern of the public in regard of their influence on the society. In this essay, different views on the corporate social responsibility (CSR) are examined and justified using the shareholders theory and stakeholders theory of CSR. Background Information of Leading Property Companies

In general, the term leading property companies are often referred to the three largest property developers in Hong Kong, the San Hung Kai Properties (San Hung Kai) and Henderson
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Moreover, it has initiated many projects of sustainable buildings, which have achieved excellent result in the HK BEAM award (Henderson, 2013). On the other hand, Cheung Kong has been supporting numerous charities in Hong Kong, being the top3 donor Community Chest for 14 consecutive years. It also participates actively in reducing energy use and carbon footprint for a better environment (Cheung Kong, 2012).

In the following paragraph, these companies' action are evaluated under the principle of shareholders and stakeholders theory of CSR.

Comments on the Above Actions Regarding CSR

The first perspective with which to look at is the shareholder theory of CSR, which is highlighted with Milton Friedmen's famous view of CSR. In his publication, he stated that "there is one and only one social responsibility of business -– to use its resources and engage in activities designed to increase its profits...” provided that the business is operated in fair competition (Friedman, 1970). It is noted that the “profit” stated by Friedman refers to the long-term profit for shareholders brought about by the well-being of various aspects such as environment and customers. Another perspective is the stakeholders theory, or business school stakeholders theory, which considers how a firm can be well-managed to induce the outcome of maximizing the profit. This idea

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