The Corporation expends substantial efforts and resources in engaging stakeholders, the purpose of which is to manage both their interests and their impacts that affect our business and corporate reputation. During 2005 an executive level study was undertaken by an independent consultant to identify and prioritise key stakeholders. Some 15 stakeholders were identified and ranked by means of a matrix that measures ability to influence against levels of interest to the Corporation. Shareholders included those groups from which our revenues arise (passengers, customers, tenants and residents), regulatory bodies and public policy stewards, groups underpinning our operations (staff, suppliers and contractors), business partners (property developers, rail project partners), our shareholders (retail, institutional) and the broader communities in which we operate (NGOs, environmentalists and local communities adjacent to the rail network). It was found that each group holds a different sway on our activities and fluctuates as to priority in relation to our business risks. The results of this study substantially shape the strategy behind recent stakeholder engagement initiatives.
Stakeholder engagement for us is a dynamic process that interacts with our enterprise-wide risk management to form a continuous dialogue of information sharing and process adjustment that maintains timely response and effective performance management. This interaction utilises appropriate avenues and formats to gauge sensitivities and build business risk scenarios to arrive at constructive management decisions and ultimately, sustainable competitive advantage.
Trust and credibility with stakeholders should be built through stakeholder analysis and engagements. As discussed in the 2005 Sustainability Report, engagement is conducted through divisional management groups reporting to the executive director level in which group-specific engagement and feedback is monitored and assessed for business risk and the impact on reputation, safety, financial performance and legal decisions. As of 2005, this methodology has changed, specifically, in reference to formulating a consistent stakeholder engagement process and reputation management framework to field, understand and act upon stakeholder issues as a single corporate entity.
To this effect several initiatives have been enacted and are in progress:
--The Sustainability and CSR (S&CSR) Committee was established. Comprising representatives of the seven corporate divisions, the Committee oversees the internal sustainability governance process and stewards through top down and grass roots initiatives the application of sustainability best practice across all divisions.
Projects initiated under this committee form the groundwork to develop a meaningful and cohesive course of action that acts to manage corporate reputation and provides the mechanisms to constructively engage in dialogue as well as influence stakeholdersˇ¦perceptions and decisions about the Company.
--The Corporate Social Responsibility Guideline was officially adopted to provide the framework within which the S&CSR Committee enacts initiatives. Over 60 initiatives are in progress covering:
- Community investment: Helping the Community, Healthy Living, Community Railway programme, Art in Station programme, customer service initiatives and disabled facilities with regard to MTR access.
- Employment and social affairs: programmes for life long learning, safety campaigns for staff, work / life balance and business ethics.
- Sustainability / environment: work done on the operating railway and in railway projects and in contracts for property development including Area 86.
--The Corporation joined the Hong Kong CSR Charter as a signatory member committing us to socially responsible behaviour within our operations and our sphere of influence. As a member we seek to provide community and industry leadership, integrate CSR into our organisational strategy and operations, constructively engage our stakeholders and communicate to them in a manner both relevant and appropriate to our business.
Ethics ˇE Adopting of the CSR Corporate Guideline and committing to the Hong Kong CSR Charter consolidates and refines our framework for the management of business ethics across all our operating centres. Combining externally developed and community-based guidelines with our own set of internal values creates a seamless set of principles for employees in all working environments and circumstances.
Code of Conduct
The Code of Conduct is our principle source and guideline for employee business ethics and behaviour. The Code covers issues such as bribery, sexual orientation, disability, cultural and other types of discrimination, family status and general ethical and business behaviours. All employees are given a guidebook on the Code in addition to briefings and seminars that exemplify application of conduct to the workplace. To demonstrate commitment and to refresh the understanding of our corporate ethics, each employee is now required to sign off on the Code every two years.
The Code of Conduct is made available to all our contractors both in Hong Kong and other markets. We encourage them to work within our guidelines in ways that best suit their business practices.
Vision, Mission and Values
The corporate vision, mission and values provide additional resources in promoting work ethic amongst staff. Expressed in the Diamond Strategic Vision, we encourage and reward employees to take initiative, be enterprising, experiment, and find creative solutions. Established schemes such as the Work Improvement Teams (WIT), the e-Pod and Six Sigma programmes along with individual award schemes and incentives for innovative ideas foster the grass roots actions that engender corporate values at the workplace.
Procurement and Supply Chain
Integrating ethical practices into our procurement process is an ongoing challenge. By engaging our partners, contractors and suppliers in constructive dialogue underpinned by work place procedure and compliance, we are progressively initiating adoption of CSR best practice where appropriate and feasible. One area of priority is labour standards.
Our strategy with labour standards is to minimise risk in contract non-performance and in regulatory breaches as well as align with International Labour Organisation (ILO) principles. We require tendering parties for our project contracts to submit as part of their bid a wage schedule for all contracted and sub-contracted staff employed. Those bids not adequately fulfilling wage specifications and minimum wage levels are barred from the bidding process. As well, from 2005, we require from all our retail and operations contractors the contractual obligation and compliance procedures that ensure government-specified minimum wage for all workers employed on our sites.
In efforts to bring ethical awareness to the broader supply chain and mitigate indirect negative impacts, the Procurement and Contracts Department includes a social qualification component as part of supplier briefings and has recently updated the Social Questionnaire in all pre-qualification exercises to reflect the adoption of the principles of the CSR Corporate Guideline and Hong Kong CSR Charter.
We actively encourage all our contractors and suppliers to draw from our processes and procedures for their own CSR model.
Ethics and Government
The MTR Corporation has on its Board of Directors senior representatives of relevant regulatory and policy departments of the Hong Kong SAR Government. They act in the capacity to oversee compliance to regulations as well as the appropriate stewardship to safeguard the viability of the MTR public asset.
As such, we do not lobby Government or employ lobbyists on our behalf; however, we do present and discuss our views and interests at regular meetings with relevant policy and regulatory representatives. The Corporation does not contribute to any political parties, government bodies or their representatives outside of formalised business contracts in Hong Kong, mainland China and in any other international jurisdiction where we operate.
