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Developing Corporate Social Responsibility for a Sustainable Food
System in Hong Kong
Connie Lee 2011533181
August 12, 2013
FOSS0018 Social Innovation Internship
Category: Corporate Social Responsibility
Community Partner: PwC Hong Kong

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I. INTRODUCTION
As the world population grows, sustainable food systems are becoming
more crucial in maintaining the world’s environment for future generations.
Hong Kong faces a rapidly growing population, diminishing resources and
increasing reliance on imports and thus, the unsustainable development of the
city’s food system is becoming increasingly threatening. (Yang, S.P., 2008).
Management of the system requires a high input of resources that go beyond
the ability of the government and civil society (Lam, Y., 2012). Corporations
have the capacity to provide these resources; however, CSR in HK is still
underdeveloped and unresponsive. (Williams 2011). For corporations to
maximize their input of resources into co-creating a sustainable food system,
HK corporations should communicate and cooperate with stakeholders to
develop long-term partnerships, adopt a strategic, long-term CSR strategy that
would give a direction for company’s CSR initiatives, and carry out and
encourage more innovation on developing sustainable production processes
and technology.
II. LITERATURE REVIEW
2.1 Sustainable Food Production and Consumption World-wide
In 1976, the world’s ecological footprint exceeded the earth’s
biocapacity and by 2007, it would have taken 1.5 years for the world to absorb
the CO2 emitted and regenerate the used resources. (WWF-Hong Kong, 2011).
Out of all the contributors to the ecological footprint, agriculture and food

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consumption are the most significant “drivers of environmental pressures,
especially habitat change, climate change, water use and toxic emissions.”
(Hertwich, E., van der Voet, E., Suh, S., Tukker, A., Huijbregts M.,
Kazmierczyk, P., Lenzen, M., McNeely, J., Moriguchi, Y., 2010). According
to the UNEP report, 14% of the world’s greenhouse gas (GHG) emissions are
created by the agricultural sector and 13% by transport, which includes the
transport of food. (2010). However, GHG emissions and land use changes are
in fact caused mostly by “energy conversion, agriculture and industrial
production”. (Herwich, E., et. al. 2010). Based on the figures, one may take
the perspective that most of the damage resulted from production activities.
However, from a consumption perspective, these consequences are in response
to the demands of final consumers.
2.2 Environmental Sustainability in Hong Kong
HK has the 45th
largest ecological footprint compared to other
countries with populations over one million. (WWF-Hong Kong, 2011). HK
has a large population of over seven million in 2012 and is one of the most
affluent regions in Asia, with the 37th
highest GDP in the world and a GDP
growth rate of 2.8% in the first quarter of 2013. (World Bank, 2013). Its
average citizen has a footprint of about 4.0 gha, which is more than double the
available biocapacity per person globally. (WWF-Hong Kong, 2011). If the
world’s population were to live like an average Hong Kong citizen, the world
would need 2.2 planets to survive. (WWF-Hong Kong, 2011). Most of this

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impact results from HK’s heavy reliance on imports and exports for food due
to the growing population and globalization that led to resource restraints,
changes in diet and food security concerns, growing wealth, and the
unsustainable consumption and production behavior.
There are increasingly more initiatives addressing this issue. Green
NGOs run programs and campaigns to raise awareness to the public about the
importance of the sustainability of our food; food banks are becoming more
common, redistributing the food to those in need to prevent waste; and green
social enterprises such as organic farms are filling the gaps between supply of
and demand for local, more environmentally friendly, and healthier produce.
HK’s first organic supermarket, ThreeSixty, opened in in 2006 and the number
of organic farms in HK have grown from 204 in 2012 to 464 in June 2013.
(Hong Kong, 2013). Ultimately, this would not only reduce the CO2 emission
emitted from N-fertilization, but also reduce the CO2 emitted from long-
distance transportation of organic goods. (Yang, S.P., 2008). Although
corporations are often backing these initiatives, the partnerships are often
short-term and unengaging such as one-off volunteering and/or financial
capital (D. Johnson, personal communication, August 1, 2013). To better
understand how to improve CSR efforts, this study serves to identify the major
drivers of the unsustainable food system, the gaps in CSR initiatives, and
possible amendments of the role corporations can play.
III.METHODOLOGY

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3.1 Objective
There is little attention given to the sustainability of the food system in
Hong Kong. Thus, the objective of this study is to: identify the drivers of the
problem; and provide recommendations for corporations in how to play a
larger, more effective role in creating a sustainable food system.
3.1 Methodology
To achieve the objectives, this study utilizes research from newspaper and
magazine articles, books, and academic papers on the factors that shaped the
food system. Further, two interviews with CR professionals and one with the
project coordinator of the YMCA’s subsidiary SE, Green Organic Farm were
conducted for on their perspectives of CSR in HK.
IV.FINDINGS
There are many factors that shaped HK’s food system to the state it is
in today; however, three categories of contributors that are significantly tied to
the actions of corporations are globalization, increase in wealth, and
consumer-corporate engagement.
4.1 Global Trade and Limitation of Resources
In 2008, HK’s total value of food imports has steadily increased 39%
due to the population growth and the “rugged uplands” that makes most land
unsuitable for agriculture. (World Bank, 2011; Yang, S.P., 2008). As the food

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system is progressively shaped by globalization and technological
advancement, more food is being transported from farther away, exacerbating
issues of global warming, acid rain, pollution and more. (Yang, S.P., 2008). In
2004, transport in general was found to be one of the biggest emitters of GHG
emissions, accounting for 13.1%. (Yang, S.P., 2008). While many of HK’s
food imports are from China, which reduces the food miles, other factors
including the amount of meat consumed, food safety factors, increasing wealth
and changing diet patterns offsets much of the miles saved. (Yang, S.P., 2008)
4.1.1 China Food Safety and Sustainable Food
Although importing food from China reduces GHG emissions, recent
food security issues have raised concerns about Chinese imports, leading
people to seek alternatives that are transported from farther away (Yang, S.P.,
2008). In 2008, 76,500 fake food cases were discovered in China, one of
which was the baby formula scandal. (Mu, X., 2009). With low consumer
confidence of Chinese goods, more goods must be imported from farther
countries to compensate, raising the amount of carbon emissions generated.
4.2.2 Limited Space and Food Waste
One of the major problems in HK is the lack of space, which results in
another problem of managing waste, 1/3 of which is food. (UNEP, 2013).
About 3,2000 tons of food waste is produced per day in HK, a rate that will
eventually exhaust all three landfills in HK within five years (Feeding Hong

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Kong, n.d.). In 2012, domestic food waste accounted for 39.1% of the total
domestic waste weight with commercial and industrial food waste accounting
for 28.2%. (Lam, Y., 2012). The 28.2% includes waste from restaurants, shops,
offices, shops, markets and hotels. (Lam, Y., 2012). The growing economic
activities in these two sectors resulted in a doubling of amount of waste within
the past five years. (Lam, Y., 2012). This amount of waste will have severe
environmental costs that range from overuse of chemicals such as pesticides to
the increase in the GHG, Methane, coming from the rotting food, which will
further accelerate global climate change. (UNEP, 2013).
There are no regulations for managing food waste in HK; instead, the
government and civil society holds programs and campaigns to raise
awareness and build a source waste separation system. One such program is
the “Food Waste Recycling Partnership Scheme” where participating
companies from various private sectors must categorize and separate the food
waste that would then be composted. (Lam, Y., 2012).
However, this “voluntary” system has several faults. One is that the
workers hired to separate the waste are rarely educated on how to do so
correctly, which ultimately results in higher costs for all stakeholders. To
avoid such costs, it is in businesses’ interests to start taking certain measures
to avoid having to take on such costs before it these actions become obligatory.
(A. Wood, personal communication, July 31, 2013).
4.3 Increasing Wealth and Sustainable Food

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Industrialized and developing countries differ in the amount of energy
used, carbon emissions emitted and other environmental impacts of household
consumption of different categories. In most industrialized countries, the
impact of household consumption is higher than that of government
consumption and their investment in infrastructure and capital goods.
Hertwich, E., et. al. 2010). Additionally, researchers calculated an overall
elasticity of carbon dioxide of 0.81, meaning when income doubles, 81% more
carbon dioxide is emitted globally. (Hertwich, E., et. al, 2010). Thus, as HK’s
GDP per capita increases, certain changes in consumption behaviour occur
including the consumption of meat and luxury items.
4.3.1 Meat
Average food consumption per person in Hong Kong grew 52% from
1971 to 1997. (Adamo, B., Foley, M., Graef, J., Stone, K., 2002). Out of the
entire East Asia region, HK has the most westernized diet, characterized by
“larger portions and higher protein and fat intake” (Adamo, B., et. al., 2002),
especially from beef and seafood that is often produced unsustainably. As
Hong Kong grows wealthier, people start to eat more meat (Yang, S.P., 2008).
HK has one of the highest beef consumption per capita rates in the world.
(Yang, S.P., 2008). In terms of consumption, beef is much less energy
efficient, taking about 40 calories of fossil fuel energy to make one calorie
worth of beef compared to the 2.2 calories used per plant-based protein.
(Gidon E., Martin, P. A., 2005). In terms of transportation, although the more

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energy-efficient railway transports 77% of the imported meat for HK
consumption, the long refrigeration of meat burns more fossil fuel. (Yang, S.P.,
2008). Most of the environmental costs come from the production stage,
where producing one kilogram of beef emits 36 kilos of CO2-e. (WWF-Hong
Kong). However by eating one meatless meal a week, 213 kg of carbon – or
86,000 cars – can be saved. (Green Monday, 2013).
4.3.2 Dietary Patterns and Shift to Exotic Tastes
As wealth increased, more HK people started to consume more
“luxurious” types of foods from far-away countries. (Yang, S.P., 2008). As
traditional Chinese believe that animals such as snakes and some protected
animals are high in nutrition and have healing functions, many Cantonese
import these rare products from the Guangdong province, decreasing
biodiversity. (Qifeng, Z., Gan., J., Xun., L., 2012). HK supermarkets also
unsustainably import a variety of out-of-season fruits and vegetables from
overseas to sell them at a higher price, which increases food miles. (Yang, S.P.,
2008). These shifts towards more extravagant foods are proof of unsustainable
consumption behavior caused by not only cultural and economic factors but
also by corporate marketing efforts, appealing to people’s desire for status and
superior quality. Changing consumption patterns would require a change in
consumer perception and values of food. (Moomaw, W., Griffin, T., Kurczak,
K., Lomax, J., 2012).
4.4 Consumers and Corporate Engagement

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Aside from the economic trends mentioned, lack consumer and
corporate understanding and participation in this issue are also a key reason
for the current state of affairs.
4.4.1 Low Consumer Awareness and Perception
Despite increasing awareness on this issue, based on studies of HK’s
food consumption patterns, people are not changing their consumption
behaviour. (Yang, S.P., 2008). As quoted from my supervisor, “waste is a big
thing in HK but people are not particularly aware”. This is because of the lack
of knowledge and “remoteness between producers and consumers” (Yang,
S.P., 2008). Studies have shown that improving the links between producer
and consumer can encourage consumers to change their behavior. An example
is having more local farmer’s markets or community supported schemes,
which has been successful in western countries. (Yang, S.P., 2008).
People are not only under-exposed to the matter, they also participate
little in programs. In HK, people think CR activities should be “fun” and less
focused on how “we should help the community” (D. Johnson, personal
communication, August 1, 2013). During the internship, even though we sent
out information on the NGO and our service targets to participants, often times
the volunteers were still not knowledgeable of the target of our activity. Extra
measures should be taken to involve the thousands of company employees in
CSR planning and activities.

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4.4.2 Low Corporate Responsibility Involvement
According to Walker, Welford and Kwok, companies in HK do not
contribute much to society either in cash or non-cash forms. (2008).
Businesses are not doing enough in “product design, life cycle and consumer
communication strategies” in regards to sustainability and disconnects CSR
from its profit-making activities. (Walker, Welford, Kwok, 2008). Based on
their survey, businesses as well as SMEs view CSR as “expensive and not
central to profit-oriented strategy” (Walker, R. M., Welford, R.J., Kwok,
W.W.C., 2008). Therefore, unless it is to comply with regulations or is
demanded by consumers, companies are unlikely to work towards change in
any environmental issue. (Walker, R. M., et. al., 2008)
Conversely, based on my internship research, many companies,
especially larger ones, are beginning to adopt CSR goals into their core
businesses although still imperfect. (Browne, J., Nuttall, R., 2013). Because of
the nascent stages, the initiatives are often ad hoc, project-based, and loosely
tied to their company mission and goals. The companies usually rely on three
tools when engaging with the outside world: a CR team based in company
headquarters, a few “high-profile (but relatively cheap) initiatives”, and an
annual report to highlight the progress of these initiatives. (Browne, J., Nuttall,
R., 2013). Because of this narrow approach, businesses often run on the
“whim of senior executives” rather than the impact and are thus “short-lived”.
(Browne, J., Nuttall, R., 2013).

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Most Asian companies are more disconnected from NGOs than
companies overseas, which is why communication between corporations and
stakeholders is still disorganized. (Williams, G., 2011). This is partly a cultural
issue, as HK’s hierarchical social structure often prevents organization
representatives from reaching others directly or speaking straightforwardly.
This was supported by a statement in the McKinsey article that stated how
NGOs want businesses to do more on “external aspects” including
“communication and cooperation with other parties, management of supply
chains, adherence to international standards” (Walker, R.M, et. al., 2008).
Although HK is one of Asia’s innovation hubs, having ranked 4th
in
INSEAD’s Global Innovation Index 2011, several experts have stated a
different view, saying Hong Kong’s innovation is still “immature” since only
1% of the city’s GDP is invested in technological innovation (2011; Perez, B.,
2013). Therefore, corporations should carry out and support more innovation
to discover new and improved products, services, environmental technology or
processes, to fill gaps in the food system.
There is growing development in innovation amongst social enterprises
(SE) however. Green Monday, a new, local SE that promotes green eating, is
the first to target the issue of sustainable food consumption. (Green Monday,
2013). However, many small SEs still struggle as most social workers
managing the SEs have limited business acumen and training, thus examples

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of SEs with both social and economic success is difficult to find. (Yuen, T.,
Lee, J., 2004).
V. DISCUSSION
5.1 Recommendations for CSR Improvements
With knowledge on the drivers of this unsustainable food system and
the gaps of CSR strategy in Hong Kong, corporations can be more efficient in
reducing environmental costs of unsustainable consumption by adopting both
internally and externally-oriented changes. To help resolve the food
sustainability issue, companies must communicate and cooperate with other
stakeholders.
5.1.1 Communication with Employees
To raise awareness and participation of people’s consumption behavior,
companies should communicate more internally about the importance of the
issue. HK has a large banking sector, employing 80,000 people in 2008, so the
reach of the message is broader. (Williams, G., 2011). Companies have
increased their efforts in skilled-volunteering, as the proportion of companies
with formal employee volunteer programs has risen to 94% in 2009 from 84%.
(Williams, G., 2011). In order to improve on these programs and create a
larger impact, the company CSR team needs to involve “big-spending
functions” like production or marketing. Although the norm for companies
now is to avoid high costs for CSR, the CSR team must engage all internal

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stakeholders in order move people to change their consumption patterns,
within and outside of the office. (Browne, J., Nuttall, R., 2013).
There are various tools companies could use to encourage sustainable
behavior or increase volunteering such as giving cash bonuses. A way to raise
awareness would be through internal “green marketing”. We adopted this
technique to encourage colleagues in PwC HK to join the green-eating
workshop we organized via the company’s internal social media site, internal
email. Our marketing strategy was to showcase the impact that the event will
have on the target group while educating employees on low-carbon living. For
other events, PwC’s CR team also writes CR excerpts that highlight key CR
projects in weekly and monthly newsletters, TV screens throughout the office
and computer pop-up notifications. By making the problem more “visible” to
present in their surroundings, employees can be more aware of the sustainable
consumption issue and become more conscious of their consumption choices.
When people feel that the problem is more related to their lives, such as to
their individual health, the bigger the chance their behaviours will change and
be imitated by cohorts. (Williams, G., 2011).
5.1.2 Communication with NGOs
Because findings have shown ineffective communication between
corporates and external stakeholders, corporations should develop more
efficient communication networks amongst those dealing with the issue. CSR
teams contact NGOs frequently; however, there are expected challenges in

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aligning both sides’ missions and expectations whilst forming any kind of
partnership. (A. Wood, personal communication, August 1, 2013). This was
the case between PwC HK and WWF. While PwC was looking towards
making tangible environmental changes, WWF’s approach leaned towards
attracting extensive media attention for PwC’s CR. Also, although PwC
wished to engage more in skilled volunteering and provide their environmental
services such as sustainability accounting services to community partners,
WWF did not need their services; therefore again, there was misalignment
between the partners. (D. Johnson, personal communication, August 1, 2013).
Thus, companies must clearly lay out their objectives, needs, and services to
the community partners so as to be able to discuss more effective ways that the
company can contribute.
There are setbacks to communicating across all sectors, one of which is
culture. As previously mentioned, HK organizations are more hierarchical
than that of Australia, which makes communication less efficient. Moreover,
people in Australia are more communicative in general compared to people in
HK, which is reflected in the company culture. These are issues that
companies have to take into account before establishing communication
systems in order to encourage more cross-sector collaboration.
5.1.2 Communication within the Private Sector
Multinational corporations (MNC) are closely connected throughout
the supply chain; therefore they have significant influence each other’s actions.

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In one of my CSR courses, I learned about the “Walmart Effect” which
describes the ripple effect MNCs have on the community. As leaders, MNCs
should utilize their influence by communicating their environmental concerns
and needs to partners such as requesting the use of locally grown, organic
produce or green catering for events. By taking assertive action, other market
leaders will be forced respond with other sustainable actions in order to
compete. Companies should also include supplier conduct into the company’s
purchasing policies while monitoring and verifying the suppliers’ compliance
to these policies. (CSR Asia, Oxfam, 2008). Since many of the companies in
HK are working with suppliers from China, HK companies can ensure stricter
food safety policies and encourage more transparency in order to reduce the
number of health incidences, progressively improve consumer confidence in
Chinese goods, and thus be able to import more foods from China rather than
from faraway countries.
Since policy plays a large part in improving the sustainability of the
food system, it would be beneficial if companies could work more closely
with the government on the issue. Environmental politics started evolving
rapidly since the 1980s and government-business relations have shifted from
“cooperation to accommodation” or even to confrontation in certain industries
contributing to climate change. (Lee, H., 2004). Some officials have felt that
corporations’ approach with the government has been “reactive, conservative
and behind-the-scenes” (Loh, C., 2004), which suggest that companies should

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invest in being more involved political planning. In the long run, it will be “in
the interest of businesses to help customers adopt to sustainable lifestyles and
behaviour” (Williams, G., 2011); thus, by taking the initiative to speak with
the government on making the supply chain more sustainable and delineating
why fulfilling certain business needs would benefit society as a whole, the
company can create a win-win situation for all. (Loh, C., 2004).
In all, because the issue of food sustainability requires complex
infrastructure and special knowledge, all stakeholders should be
knowledgeable on the happenings within the network so as to not have too
many overlapping projects and be more efficient in filling the gaps.
5.1.2 Strategic CSR
CSR in Asia is developing quickly, however management of CSR
activities is often “unstructured or piecemeal” (Williams, G., 2011). The CSR
strategy is meant to give focus to the ventures and partners the company
chooses to get involved with based on its resources, core business,
environmental mission and objectives. These were the factors I had to take
into account when selecting compatible long-term NGO partners for PwC.
Companies should be clear on the business value of CR and how it
ties into the core business when forming a strategy (D. Johnson, personal
communication, August 1, 2013). When CR is just considered as “an add-on”,
companies pursue more low-cost, project-based initiatives to take on such as

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one-time employee volunteering activities or community event sponsorships.
(Williams, G., 2011). Whatever the focus is, the company should aim to create
long-term, sustainable relationships and impact. For example, CLP Power
Hong Kong Limited, an energy company, runs a very successful skilled-
volunteering program called “Rewiring for the Elderly” where CLP’s
engineers help low-income, single elderly living to “conduct rewiring,
electricity safety inspections and maintenance of electrical appliances service”
(CLP, 2010). The project is voluntarily continued by engineers in the company
and has been running steadily for many years. The success of the project lies
in its leveraging of engineering expertise of the employees, its long-term
commitment to the cause and the alignment of the project’s objectives with
that of the company’s overall.
5.1.3 Innovation
The process of shaping a sustainable food production and consumption
system is highly technical. Thus, society would significantly benefit from
further innovation all along the supply chain focusing on creating sustainable
food. No matter in which stage or of what function of the process that the
business chooses to innovate, companies should be responsible of taking into
account of the product or service’s entire life cycle even after consumption.
For example, in 2012, Starbucks Hong Kong invested in a study that
developed biorefinery technology that could convert food waste into plastic

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used in certain products. (Bladon, A., 2012). If the pilot plant is successful,
long supply chains and transportation can be reduced.
VI.CONCLUSION
In conclusion, the overarching driver of the issue of unsustainable food
is globalization, which includes the increase in trade, an increase in wealth and
the lack of stakeholder engagement. To maximize impact, businesses should
not only consume and produce sustainably but also increase stakeholder
dialogue and form long-term, high-engagement partnerships to create long-
lasting impact, develop a overarching CSR strategy that clearly defines the
company’s CSR objectives and leverages on the resources that company has,
and to innovate or support innovation in environmental sustainability.
However, with limited studies on these topics that are written from an Asian
perspective, more research on best practices for HK companies when targeting
environmental systems is needed. The key to sustainable food in HK is
changing consumption patterns and behaviour; therefore, corporations must
collaborate with all stakeholders to create a sustainable future. (Word count:
3993)
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