Corporate social responsibility and the Hong Kong construction industry

Corporate Social Responsibility (CSR), the responsibility of a corporation for the impacts of its decisions on society and the environment, originated as a term, concept and academic research field in America in the 1950s (Carroll, 1999). Since then, its definition and scope have been controversially debated within academe and broader society. However, ISO 26000 (2010) “Guidance on Social Responsibility” published in November 2010, redefines “Social Responsibility” (“SR”) broadly, by reference to SR principles, core subjects and issues, and establishes a common reference point for practitioners, at least. The Hong Kong Construction Industry (“HKCI”) sector is critical to Hong Kong’s economy. In 2011, the gross value of construction work by main contractors amounted to HK$215.0 billion and contributed HK$65.4 billion (HKSARCSD, 2013, p. 12) to the total GDP of HK$1,823.2 billion (3.6%) (HKTDC, 2013). The HKCI comprises a small number of large local and overseas contractors dependent upon [primarily SME] sub-contractor firms (Rowlinson, 2007) for which the concepts of CSR are still poorly understood (Studer, Tsang, Welford and Hills, 2008), a practice that can dissipate espoused CSR policies (Green, 2007). The aim of this research is to investigate the current epistemological foundation for CSR research; which, if any, ISO 26000 (2010) CSR issues are relevant to HKCI firms, and whether such relevance is firm-size dependant; whether they are similar to construction industry firms elsewhere; and, whether they are strategically driven. The principal findings are as follows. Stakeholder theory is predominant in CSR research but interest in resource-based theory is increasing and, being possibly more applicable to the study of CSR practices in SMEs, it may be better suited to CSR research in the construction industry. The reported level of HKCI CSR activity relative to the 7 core subject of ISO 26000 (2010) is a function of company size. Many SMEs consider that some of the ISO 26000 (2010) SR issues are irrelevant to them. However, for large construction contractors with employee numbers greater than 200, the SR issues in ISO 26000 (2010), particularly those relating to the health and safety in the workplace and to the environment, are not only relevant but, in many cases, the corporate SR activities exceed legislated requirements. Finally, corporate reputation, legislation /regulation and corporate culture are drivers of improvements in CSR in the HKCI. The results of the study partially fill gaps in the CSR literature relating to firms in the construction industry.