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A MEMBER OF THE UNIVERSITY OF HONG KONG GROUP

香 港 大 學 機 構 成 員

AMY YIP ELSHA YIU

OCEAN PARK HONG KONG: CORPORATE SOCIAL RESPONSIBILITY (“CSR”) IN ITS

CORPORATE DNA

Ocean Park Hong Kong is expanding and is growing more globally than ever;

we may have done things differently over the years. Nevertheless, our

corporate social responsibility (“CSR”) initiatives are core in our board and

management levels, and CSR practices are carried out in all organization

levels. Our CSR initiatives have evolved together with the organization; they

are a part of the Park’s DNA.

-- Mr. Matthias Li, Deputy CE and CFO of Ocean Park Hong Kong1

For the past two decades, corporate social responsibility (“CSR”), also known variously as

corporate citizenship, corporate responsibility and management sustainability, has been taken

seriously and substantially by boards and management teams of world-class amusement

parks.2 In the course of being defined and re-defined, the concept of CSR, as well as its

associated reporting behaviors and practices, has been undertaken by and more thoroughly

examined in management studies. Such studies found that CSR initiatives had a positive

influence on a company’s ethical motives, and helped raised standards regarding social,

environmental, and economic reporting in annual reports and various media.3

While it might have been seen as a global trend emerging in the beginning of the second

millennium, CSR was an essential part of Ocean Park (“the Park”) since the day one of its

inception. Embedded in its corporate ordinance, the Park’s vision and mission - to provide

recreational and educational services for the Hong Kong public - aligned the organization in

a common direction and served as a rubric for strategy and decision-making. Always putting

the Park’s mission first would prove to be essential and relevant in the later phases of the

Park’s development and expansion.

1 Company interview with Mr. Matthias Li on 8 May 2015.

2 Holcomb, J., Okumus, F., and Bilgihan, A. (2010) “Corporate Social Responsibility: What are the Top Three Orland Theme

Park Reporting?” Worldwide Hospitality and Tourism Themes vol. 2. no. 3, Emerald Group Publishing, p. 316-317.

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The case was supported by a grant (UGC/IDS12/14) from the Research Grants Council, HKSAR.

© 2015 by Centennial College, a member of The University of Hong Kong group. No part of this copyrighted publication may be

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This case was prepared for class discussion purposes and is not intended to demonstrate how business decisions or other

processes are to be handled. Ref. 16/002C Published: 18 Jan 2016

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One may ask: what were the main reasons that Ocean Park commenced its CSR initiatives at

the onset? How did Ocean Park integrate CSR practices into its daily operations and business

decisions? How did Ocean Park integrate its decades-long CSR activities and practices into its

organizational changes during the redevelopment and expansion phases of recent years?

Finally, did Ocean Park increase its CSR activities and practices in recent years, and could the

Park continue to fulfil and stay committed to its original CSR initiatives?

Ocean Park’s 1987-2015 Transformation

Ocean Park had a 37-year history. The government of Hong Kong allotted a piece of land and

the Hong Kong Jockey Club provided the funding to build the Park. In the first ten years of

operation, the Park was run as a Jockey Club subsidiary company. In 1987, the Jockey Club

handed the Park over to the government and established a HK$200 million trust fund to

ensure the Park’s continued development. The Park was then incorporated, under the Ocean

Park Ordinance, as a financially independent, non-profit organization to be managed by the

Ocean Park Corporation. The corporation’s principal activity was to create and maintain the

facility as a public recreational and educational park. [See Ocean Park Corporation Code on

Corporate Governance Practices in Exhibit 1.]

Between 1977 and 2005, the Park served the Hong Kong public with about 35 rides and

attractions, including a water-themed attraction. The number of visitors peaked in 1997 at 3.8

million, and then slumped to a record low of 2.9 million in 2001. In 2003, the Park was

reported to have accumulated US$25 million in losses since 1998, and it seemed destined to

be sold or privatized.4

In 2005, the Park announced a major redevelopment plan known as the “Master

Redevelopment Project” (“MRP”), which would transform it from a deficit-running local

operation into a world-class theme park. The plan marked the most significant change in the

Park since its inception. The Park called for a capital investment of HK$5.55 billion for six-

year. In terms of size, the Park increased from 300,000 square meters to 438,000 square

meters. The Park’s daily capacity increased from approximately 30,000 to 50,000 visitors.

With respect to attractions, the number was more than doubled.

Guided by the new vision of then-reigning chairman, Allen Zeman, the Park was to be a

world leader in providing excellent guest experiences that connected people with nature.

Within the plan, some of the changes and new attractions would make the Park a key player

within the region’s hospitality and tourism industry. For example, in 2010 the Grand

Aquarium became one of the largest aquariums in the world, housing 5,000 fish and 400

species.

In the course of expansion, the Park had not given up its non-profit status. It consistently kept

a unique approach – involving education within recreation - while introducing new attractions

and exhibits. The Park had made use of animal exhibition sites to spin off educational

activities and tours. Educational tours conducted in the Polar Adventure, The Rainforest,

Pacific Pier and the Grand Aquarium were offered to the public as separate activities. Tours

such as “My Animal Fun-Time,” “Animal Party Duet,” “Ocean Athletes,” “Penguin

Encounter Programme,” “Sea Lion Feeding,” and “Grand Aquarium Scuba Diving,” included

exclusive guided visits, hands-on experience and interactive learning about nature and

animals. These exhibitions, presentations, and attractions were conducted on the actual

3 Holcomb, J., Okumus, F., and Bilgihan, A. (2010) “Corporate Social Responsibility: What are the Top Three Orland Theme

Park Reporting?” Worldwide Hospitality and Tourism Themes vol. 2. no. 3, Emerald Group Publishing, p. 318. 4 ITB (5 June 2003) “Ocean Park may be Sold or Privatized,” www.ttgasia.com/article.php?article_id=7433

(accessed 25 May 2015).

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exhibition sites, enabling learners to gain first-hand information and experience about animals

and ecosystems. These sites also served as grounds on which scientific research and projects

could be undertaken. The educational exhibits and presentations allowed the Park to feature

key themes, such as sustainable seafood and marine biodiversity, to instill conservation

awareness, and to inspire actions that would positively impact the natural environment around

us.

The MRP’s outcomes were remarkable, and actual statistics met expectations and projections.

In 2014, the Park received 7.8 million visitors, having reached and surpassed the target set in

2005. In the tourism and recreational industry, visitor number was a measure of success. In

the world’s ranking of most visited theme parks, the Park took the 11th place according to

TEA/AECOM Attraction Attendance Report in 2013. Within Asia, it took fourth place, and in

Greater China, it ranked first.

The Park also began to receive local and global awards. The 2012 Applause Award presented

at the International Association of Amusement Parks and Attractions Expo served to mark the

Park’s global status within the tourism and hospitality industry. It was the highest recognition

awarded to a theme park, and the Park was the first in Asia to win it. In 2015, TripAdvisor

nominated the Park as one of the top theme parks worldwide, ranking 2nd

in Asia and 23rd

in

the world.

Underlying the Park’s impressive outward changes were a persistent vision and mission,

passed on from one chairman to another over a decade and a half. The Chairmen’s messages

persistently referred to the Park’s role and responsibility towards the Hong Kong public,

calling for clear pursuit of non-profit goals such as conservation, education, and care for the

environment. More importantly, the message conveyed the clear mission of serving the Hong

Kong public, because this public was the Park’s major stakeholder. [See Exhibit 2 for

chairmen’s messages]. Chairman Allen Zeman, who represented the Park’s new era, chairing

it between 2003 and 2014, summed it up:

It bears emphasizing that community pride in Ocean Park is critically important as

we move into our new era, because Ocean Park is above all else a possession of the

Hong Kong people, and part of the community’s heritage. Even as international and

mainland visitors surge, there can be no doubting Ocean Park’s core mission to serve

its local community, above all else in the areas of education about the natural world,

and the conservation of our marine environment.5

The Park’s MRP would not have been possible if it not been for the substantial support of a

wide range of social players, ranging from the government of Hong Kong to the Tourism

Commission, from charity groups to international organizations and from corporations to

individuals who lived and worked in the Park’s community. Nevertheless, the Park attributed

its success to the Hong Kong public, which was the major contributor to its overall revenue.

[See Exhibits 3 and 4.]

5 Ocean Park (2003-2004) Annual Report, www.oceanpark.com.hk/doc/common/footer/ar/ophk_ar03-04.pdf (accessed 25 May

2015).

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Ocean Park’s CSR Initiative Embedded in its Original Identity

Vision and mission

The vision of Ocean Park was stated as “[becoming] a world leader in providing excellent

guest experiences connecting people with nature.” The Park’s mission was to provide all

guests with memorable experiences combining entertainment and education, while inspiring

life-long learning and conservation advocacy. It was further dedicated to maintaining a

healthy financial status, while striving to deliver the highest standards of safety, animal care,

products and guest service.6

Within the framework of providing services that combined education, entertainment and

maintaining a healthy financial operation, the Park aspired to achieve a global status beyond

local and regional recognition. The Park’s aspirations aligned with Hong Kong’s

cosmopolitan and a world-city status. The Park recognized that simply providing thrill-based

or theme-based entertainment to visitors would not be enough to make the Park a world leader

in the global tourism industry. Whereas, by actively promoting and integrating its social

responsibilities within the Park’s operations, the Park would make the best use and take the

most distinct advantage of its non-profit status.

Incorporation as a non-profit organization

Its non-profit status allowed the Park to allocate resources to uphold and promote the Park’s

mission of connecting visitors with nature. According to Deputy CE and CFO Li, the Park’s

board and management could weigh the value of educational activities, conservation, and

environmental protection above profit-seeking, keeping these core values at heart, whether in

everyday operations or in major expansion schemes.7 Being such a cultural force shaped and

guided the organizational culture and staff morale. Therefore, as a theme park, the Park

appealed not only to its visitors’ thrill-and-entertainment seeking, but also took on a proactive

role in providing educational and meaningful experiences to visitors so that they would

become aware of social issues, such as environmental concerns and conservation. [See

environmental stewardship, health and safety, quality of staff and corporate citizenship in

Exhibit 1.]

Non-profit, but adopting commercial principles

Despite the Park’s expansion in scale and size, and rise in status, it could continue to exploit

and expand its non-profit identity. This non-profit status allowed the Park to put rent-seeking

and profit-maximization after its vision and mission, which remained the primary impetus

driving the Park’s developmental and financial planning. [See good corporate governance,

accountability, and internal control in Exhibit 1.] Because the Park was not subsidized by the

government of Hong Kong, the Park’s board and management team had been solely

responsible for ensuring its commercial viability, taking multiple stakeholders into

consideration in accounting for their decisions and actions. The Park was left to sustain its

own operations, and the board and management team could only apply profits to the Park’s

growth and development. CSR was thus embedded in the corporation’s operations since its

6 Ocean Park official website, http://www.oceanpark.com.hk/html/en/footer/corporate-information/vision.html (accessed 1 June

2015). 7 A different version was published in 2002: “Ocean Park was established in 1977. Ever since, it has adhered strongly to its

mission: to provide local and overseas visitors with experiences that combine entertainment and education and to assist in the

understanding and practice of wild life conservation. Ocean Park aims to be financially viable while offering its patrons a diverse range of activities at affordable prices. While continuously expanding and improving our entertainment facilities and

service standards, we also seek out and introduce new educational programmes and opportunities to promote lifelong learning.

As a non-profit organization, Ocean Park exists for the public benefit. We strive to deliver the highest standards of quality and customer care.”

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inception. Though non-profit, the Park adopted commercial principles to ensure it would

bring not only social and environmental but economic benefits to Hong Kong. Furthermore,

“[the Park’s] aim is to maintain a healthy financial status while striving to deliver the highest

standards of safety, animal care, products and guest service.”8

Ocean Park’s Operational Approach to CSR

Making CSR Operable

Internally, the Park had established a variety of key committees with specific, written terms of

reference to facilitate its changes and expansion. These included the Resources Committee,

Treasury and Investment Committee, Audit Committee, Development and Tender Committee,

Tai Shue Wan Steering Group, Hotel Steering Group, and Education Advisory Committee.

[See Exhibit 5.]

At first glance, none of the committees, other than the education advisory committee, seemed

directly responsible for CSR. Unlike many large business organizations with global

operations that institutionalized CSR through corporate policy and strategy, the Park’s

operational committees were tightly linked to the board. It was here that CSR initiatives were

proposed, approved and delegated to over 2,000 staff of the organization, by means of

programs the various committees launched, operated, and checked. Even the Treasury and

Investment committee had a role to play: it assessed and evaluated CSR initiatives’ potential

risks on the overall organization in order to safeguard financial health.

Structure and Responsibility

CSR’s operational impact on the Park can be seen in Table 1 below. The board of directors

safeguarded and reinforced the mission and vision of the organization and the senior

management team ensured the execution of CSR program.

Table 1: The Park’s General Structure and Responsibility9

Role of Board of Directors Oversight of development and performance

Overall direction

Role of Senior Management

and Committees Manage the execution of plans for CSR programs

Drive interdisciplinary and inter-departmental efforts

Role of Education Advisory

Committee Advise Management on the promotion and

implementation of the Corporation’s education

mandate.

Staff Engagement All staff who join the Park will be trained in safety,

services, and, equally important, environmental and

educational awareness.

As an annual gathering of Ocean Park’s staff, Ocean

Park organized a competition for environmental

conversation and safety-related issues and questions.

This was one of many exemplary activities showing

the Park’s efforts to impart genuine, approachable,

and learnable environmental awareness and

conservation to the staff.

8 Ocean Park Annual Reports, 2010, 2011, 2012, 2013, 2014.

9 Dai, N.T., Tang, G. and Ng, A., (April 2013), “Driving CSR and Sustainability Performance: Two Chinese Pioneers,” Insight,

http://www.cimaglobal.com/Thought-leadership/Newsletters/Insight-e-magazine/Insight-2013/Insight-April-2013/Driving-CSR -and -sustainability-performance-two-Chinese-pioneers/ (accessed 10 June 2015). Italicized changes made by author.

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In Li’s words, the programs would be run, recorded in quantifiable terms, and then reported in

the annual report. The numbers in the evaluations not only served as a report to the general

public, but also became powerful key performance indices for the organization’s

measurement of its programs and their execution.

The Park’s CSR Programs As one of Hong Kong’s oldest recreational theme parks, Ocean Park had a long list of CSR

programs, reported and unreported. In recent years, the Park had generally reported its CSR-

related activities in the following categories: social programs, edutainment, conservation, and

corporate partnership. [See Exhibit 6 for Ocean Park's edutainment facilities, conservation

facilities and corporate partnership facilities.]

Social programs

Ocean Park’s social programs were an integral part of its existence, development, and

operations. Over time, the Park had launched a number of social care programs that explicitly

demonstrated the Park’s efforts to serve all Hong Kong citizens. The committees designed

various programs to enable every citizen to enjoy the Park. Some well-known and regular

programs included:

1. Free for every Hong Kong citizen aged 65 and above;

2. Every Hong Kong citizen enjoys a free day pass on the birthday;

3. Hong Kong citizens who are beneficiaries of government social welfare programs are

entitled to $20 entry passes;

4. All holders of the Registration Card for People with Disabilities are entitled to free

entrance to the Park ,while one accompanying friend or family member is entitled to 50%

discount on the entrance fee;

5. The Park had observed the International Day of Disabled Persons (“IDDP”) for over 20

years.

Furthermore, the Park recognized income-gap realities and instituted measures to support the

underprivileged. Currently, these social-care programs were primarily administered and

overseen by the Public Affairs and Human Resources departments. Every year, the Park also

gave away many entrance tickets to various charities in order to allow more people, whom the

Park might not otherwise be able to reach, to enjoy Park’s services. Reaching out through

charitable groups had been a CSR strategy the Park consistently employed to ensure fair

distribution of the Park’s services to every sector of the Hong Kong society.

Edutainment

Another key category of CSR programs was education, especially education in conservation

and environmental issues. The Park had to subsidize some of its educational programs heavily,

taking in fees ranging from only HK$50 to HK$80 per participant. Nevertheless, aiming to

serve every Hong Kong student, the Park collaborated with the Hong Kong Jockey Club

Charities Trust to support students unable to pay the basic fee. According to annual reports,

approximately 55,000 school children each year had the opportunity to visit Park exhibitions

on much-discounted fares.

The Ocean Park Academy was established in 2004 to further develop and strengthen

educational program efforts for kindergarten, primary and secondary students and teachers.

Operated within the Park, these education programs focused on animal conservation, general

studies, liberal studies, science and other learning experiences. The Academy also organized

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outreach seminars and animal-themed programmes free of charge on school campuses

promoting environmental education.

In addition to student programs, the Park launched corporate training programs focusing on

global environmental issues, electricity conservation and renewable energy. During the period

from 2011 to 2014, the Park conducted over 100 training sessions, involving over 7,000

participants, from fields ranging from banking to law, medicine, retail and the public sector.10

As an international park situated in an international city like Hong Kong, the Park was not

only expected to promote and enforce recycling and reuse. Its role was also to innovate and

adopt new ideas and efforts through associations with different organizations, such as the

Hong Kong Green Council and International Green Purchasing Network, and in large-scale

education expos, such as the Learning and Teaching Expo. These initiatives continued to

expand and influence environmental education in Hong Kong.

While actively publishing its relevant policies and programs on the government website, the

Park demonstrated full awareness and readiness to tackle some of the inherent problems its

operation brought to the environment. As Hong Kong’s most prominent and most visited

recreational site, the Park adopted a forerunner role in response to the government’s appeals

for responsible corporate behavior.

Conservation

Another category of CSR initiatives and practice was conservation. The Ocean Park

Conservation Fund (“the Fund”) was established in 1993 and managed by the Park’s

Conservation Foundation. The Hong Kong Society for Panda Conservation was established in

1999. In July 2005, the two merged to form the Ocean Park Conservation Foundation Hong

Kong (“the Foundation”). The Foundation’s mission was to advocate, facilitate, and

participate in effective conversation of Asian wildlife, with an emphasis on Chinese white

dolphins and giant pandas, as well as their habitats. Every year the Park was able to contribute

circa HK$10 million to the Fund. In 2013-2014, the Park contributed HK$13.1 million to the

Foundation. For every ticket sold, the Park donated HK$1 to the Foundation. A portion of the

Panda merchandise proceeds, revenue from Food and Beverages and animal encounter

programmes, as well as the entirety of admission revenue from the Animal Conservation Day

in January are also donated to the Foundation. Given that this contribution was based on

turnover and not on profit, it represented a significant contribution by the Park. [See Exhibit

4.]

Since 2005, the Foundation has allocated over HK$ 58 million to fund over 400 research

projects on cetaceans, giant pandas and many other species. The Foundation also had its own

fund-raising programs aiming at conservation and wildlife protection, as well as scholarships

for students from Hong Kong and other parts of Asia. In 2013 and 2014 alone, the Foundation

funded 44 conservation projects, covering 30 species in 12 Asian countries. The Park was also

the first institution in the world to succeed in artificially inseminating bottlenose dolphins and

developing numerous breeds of goldfish.

Environmentalism was a steadily rising political concern both globally and locally. Set up in

2008, the Environment and Carbon Management Steering Committee (ECMSC) installed bins

enabling visitors to participate in the recycling movement. The Park also initiated

environmental-management and carbon-reduction programs. [See Exhibits 7A and 7B.]

10

Ocean Park (2013-2014) Annual report, p. 32.

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For a theme park with a long history of operation, renewing and reusing existing facilities was

a considerable challenge. A case in point was the creation of Shark Mystique in the Atoll Reef

exhibit, a conservation project completed in 2013 that maintained a legacy facility opened 37

years ago. The upgraded facility featured an energy-efficient gas-absorption refrigeration

system, extensive use of LED lighting, and two skylights to let natural light in. The

Adventures in Australia exhibit was also developed from an existing building, with an

ethylene tetrafluoroethylene (ETFE) roof added to enhance heat insulation and natural

illumination for the future koala residents.11

As a result of external pressure from local policy-makers, the Park had been made a

forerunner in exploring and adopting new and better energy management. The management

team understood that, in accordance with their Master Redevelopment Plan, the Park was

required to set a ten-year carbon-emission reduction target. In 2013, the Board approved a

Carbon Footprint Strategy that included a series of carbon reduction programs and specific

carbon reduction targets with respect to both absolute levels and intensity. It pledged to

reduce absolute carbon emissions by 10% and reduce carbon intensity by 25% per visitor by

2021/22, when compared with 2011/12.12 [See Exhibit 8.] Every year’s statistics would have

to be reported in that year’s annual report. In order to commit to this pledge, the Park had to

invest in a number of resources to upgrade energy-reduction facilities.

Corporate partnerships

The Park worked with various organizations that recognized the Park’s CSR principles and

practices, and that the Park, as a brand, represented a healthy corporation. The Park had

developed some long-term partnerships with corporations that had distinctive CSR branding.

For example, Kee Wah Bakery,13 a well-known Chinese bakery brand founded in Hong Kong

in 1938, was a CSR-caring company that sponsored the “Old Hong Kong,” a theme street

inside the Park that promoted Hong Kong’s history, food and transportation, and other

elements reflecting changes in Hong Kong society. The “Old Hong Kong” was situated in a

main artery of the Park that visitors had to walk through should they want to take the cable car,

one of the Park’s top attractions and its signature/symbol. Through selling of snacks and

knick-knacks and booth games, the Park and its partner enabled visitors to consume not only

food and drinks, but also cultural and historical memories rarely experienced in daily life, and

which constituted a Park theme that was much photographed and fondly remembered.

Another long-term partner was Volkswagen Group (“VW”), which sponsored the Ocean

Express, a new addition in 2008 and the second link, after the Cable Car, connecting the two

sides of Brick Hill (Nam Long Shan), where the Park was situated. VW’s 2014 sustainability

report showed that VW’s compliance with ISO14001 had reached 97.7%, compared to 96.8%

in 2013. 14 The ISO14001 standard was published by the International Organization for

Standardization (“ISO”), the world’s largest developer of voluntary international standards.15

The ISO 14001 standard was structured for companies and organizations of all kinds looking

to manage their environmental responsibilities, to be adopted by ISO 14001-certified

companies world-wide. Li referred to VW’s environmental management and experience as

important criteria in meeting the Park’s strategic-partner scheme.

11

Ocean Park official website, http://www.oceanpark.com.hk/doc/common/footer/ar/ophk_ar13-14.pdf (accessed 15 May 2015). 12

Ocean Park (2012-2013) Annual report, http://www.oceanpark.com.hk/doc/common/footer/ar/ophk?ar11-12.pdf (accessed 25

May 2015), p. 25. 13

Kee Wah was awarded the Caring Company Award by the Hong Kong Council of Social Service in 2010 in recognition of the

work it has done in caring for the society, its workforce and disadvantaged groups. Kee Wah company website,

http://en.keewah.com/about/charity.html (accessed on 2 June 2015). 14

Volkswagen Sustainability Report, http://sustainabilityreport2014.volkswagenag.com/indicators-and-goals, (accessed 5 June

2015). 15

Founded in 1947, ISO officially came into existence with 67 technical committees in Geneva. Since then, ISO has published

more than 19500 International Standards covering almost all aspects of technology and business. ISO 14001 was established in 2004. ISO official website, http://www.iso.org/iso/home/about/the_iso_story.htm, (accessed 10 June 2015).

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Ocean Park’s CSR Reporting and Development

Being a public-vested organization, the Park made itself accountable to all stakeholders by

publishing an annual report online. CSR was a part of this annual report. Here, the Park

reported on all five main CSR areas: environment, community, market place, vision and

values, and workforce [see Exhibit 9].16 The Park reported its CSR performance in detail in

the “Sustainability Report” section on its continuing programs and performances, charting

progress, new programs launched, and new awards won.

Reporting was taken seriously by the Park, and the annual report had been a key tool of

communication between it and the public. As CSR had been an important part of the annual

report, the Park continuously sought new and more advanced ways of improving its reporting,

so as to better represent itself to stakeholders of all kinds.

In 2014, the Park developed a CSR Register Review, devised by an external consulting

agency, to produce a formal, comprehensive CSR policy and strategic plan to guide and

inform future CSR decisions. The register review involved extensive surveys to be undertaken

by stakeholders, and was expected to take at least a year to complete. The ultimate goal of

aligning the CSR recording and tracking system to internationally recognized guidelines, i.e.

the ISO 26000, was to assert the Park’s global status and reach a global audience more readily.

The seven core subjects of ISO 26000 were:

Organizational governance

Human rights

Labor practice

Environment

Fair operating

Consumer issues

Community involvement and development17

According to Li, it was in the Park’s interest to measure itself against ISO 26000 [see Exhibit

10 for CSR subjects], which provided guidance on the understanding and reporting of CSR

subjects [see Exhibit 11 for a schematic overview of ISO 26000]. Once the evaluation and

assessment was completed, the Park would be able to plan future CSR programs and policies

more clearly.

Another benefit was that this evaluation and assessment would help inform the board and

senior management of organizational decisions relating to CSR responsibilities. Such

decisions included, for example, whether to streamline, consolidate, or expand internal

operation of existing CSR programs, so as to allocate existing resources more effectively.

16

The five main areas were detailed by Holcomb, J., Okumus, F., and Bilgihan, A. in “Corporate Social Responsibility: What are

the Top Three Orlando Theme Parks Reporting?” Worldwide Hospitality and Tourism Themes vol. 2. no. 3, Emerald Group

Publishing, p. 320. 17

ISO official website, http://www.iso.org/iso/sr_7_core_subjects.pdf (accessed 10 June 2015).

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Epilogue

Given its prominent achievements and success following completion of the Master

Redevelopment Plan, the Park had applied to the Government of Hong Kong’s Tourism

Commission for further funding to develop the Tai Shue Wan Development Project. The

Project estimated a net additional contribution of annual quantifiable economic benefits to

Hong Kong of some HK$842 million in 2018 to HK$1,240 million in 2048, in present-value

terms. On-going operations were expected to generate some 2,900 to 4,290 new jobs between

2018 and 2048.18 Furthermore, the Park would continue to grow its hotel and resort business,

adding a four-star, 495-room Ocean Hotel to be opened in 2017. In addition to the current 80-

plus attractions, the Park will add 30 more attractions, with the 400,000 square-foot Water

World being the center of attention. The Water world will feature both indoor and outdoor

attractions including wave pools and water slides.

According to Li, the Park’s CSR scope had to continue to expand over the coming years, as it

was beyond question that the Park’s incorporation of such measures was far from complete in

view of the upcoming expansion. As the Park grew in scale, scope, and size, the management

team needed to continue to seek systematic approaches, guidelines, and practical tools to

manage its environmental responsibilities, keeping hotel-design questions in mind in order to

engage in environmental protection, and balancing commercial principles and CSR initiatives,

practices and reporting.

Suggested Questions:

1. What were the driving factors of Ocean Park’s CSR initiatives?

2. How Ocean Park’s CSR initiatives fit within the ISO 26000 framework?

3. What was Ocean Park’s unique operating model, which balanced non-profit status and

commercial principles?

4. What were the advantages and challenges of Ocean Park’s unique operating model in

terms of its CSR undertakings?

18

Tourism Commission, Commerce and Economic Development Bureau (March 2013) Legislative Council Panel on Economic

Development Ocean Park’s Tai Shue Wan Development Project,

www.tourism.gov.hk/resources/english/paperreport_doc/legco/2013-03- 25/ED_Panel_Paper_on_Ocean_Park_March_2013 _eng.pdf (accessed 1 June 2015).

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EXHIBIT 1: OCEAN PARK COPORATION CODE ON CORPORATE GOVERNANCE PRACTICES (EXTRACTS OCTOBER 2014)

OCEAN PARK CORPORATION

Ocean Park Corporation (the “Corporation) is a statutory body incorporated under the Ocean

Park Corporation Ordinance (Chapter 388). The Corporation’s principal activity is to manage

and control Ocean Park as a public recreational and educational park.

GOOD CORPORATE GOVERNANCE

The Corporation believes that good corporate governance will assist the Board and

Management to pursue objectives that are in the interests of the organization and the public,

lead to better corporate performance and reputation and is essential in attaining long-term,

sustainable growth. While recognizing that corporate governance may be affected by many

factors, the Corporation believes that the core principals of accountability, transparency and

integrity are fundamental to good governance and has, therefore, adopted these as the

cornerstone of the Corporation’s governance framework.

ACCOUNTABILITY

Under the current structure, day to day management and administration of the Corporation’s

businesses is delegated to the Chief Executive (“CEO”). Matters reserved for the Board are

those affecting the Corporation’s overall strategic policies and finances.

INTERNAL CONTROL

The Corporation’s internal controls have been designed to give reasonable assurance that the

Corporation’s assets have been prudently safeguarded, that maximum value for money is

obtained from its expenditures, that its business activities are conducted in a fair and

responsible manner and that its financial reporting is accurate, transparent, timely and

complete. The fundamental objective of the Corporation’s internal control is to manage and

mitigate the risks facing the Corporation.

QUALITY OF STAFF

The effectiveness of internal controls relies on the integrity and performance of the staff. The

Corporation organizes training and communication programmes to enhance staff competency

and maintain an ethical culture at all levels of the Corporation. The Corporation also has

structured training and development programs to ensure that the right competencies and

talents are in place or developed to meet the Corporation’s business objectives and long-term

requirements.

ENVIRONMENTAL STEWARDSHIP

The corporation recognizes the need to create a corporate culture of environmental

stewardship and to blend with an environment that supports the sustainable use of Earth’s

resources.

Management of the Corporation has established the Environmental Steering Committee to

oversee the implementation of the Park’s Environmental Policy and to promote environmental

stewardship.

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The Corporation endeavors to ensure that the management of its operations is in a manner,

which adheres to environmental good practice and is committed to full compliance with legal

and regulatory requirements.

HEALTH AND SAFETY

The Corporation is committed to providing a safe and healthy environment for the Park’s

guests, employees and animals.

Management of the Corporation has established the Corporate Safety Committee to organize,

develop, promote and maintain the Health and Safety Policy, and oversee the health and

safety performance for the Park’s guests, employees, and animals.

TRANSPARENCY

The Corporation considers transparency an important attribute of good corporate governance

and has taken an open approach in disclosing information relating to its performance and

operations. To promote transparency and openness, the Corporation has undertaken to

circulate the attendance records of the Board Members and various other sub-committee

meetings among the Board on a periodic basis.

CORPORATE CITIZENSHIP

The Corporation is committed to being a responsible corporate citizen. As Hong Kong

people’s Park, the Corporation will ensure accessibility of the Park’s facilities for, and

develop appropriate programmes to meet the needs of, the different sectors of the community.

Source: Adapted from Ocean Park Corporation Code on Corporate Governance,

www.oceanpark.com.hk/doc/en/footer/OPHK_Corporate_Governance_Code_ENG.pdf (accessed

on 1 June 2015).

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EXHIBIT 2: CHAIRMAN MESSAGE (EXCERPTED)

Year Chairman Chairman’s excerpted message Important milestones

2001-

2002

Philip Chen

Nan-lok, JP

It was agreed that Ocean Park’s reputation

as a globally-recognized oceanarium

should if possible be used as a foundation

for development, and that our role in

conservation and education should be

protected.

1. The Government’s

Task Force on

Redevelopment of

Ocean Park and

Tourist Attractions in

Aberdeen.

2002-

2003

Outgoing

Philip Chen

Nan-lok, JP

A Park that for a generation had sat close

to the hearts of most Hong Kong families

as a prime locus for family fun and nature-

focused education faced new and serious

challenges. In the public mind, these

challenges appeared to be driven by the

planned opening of Disney in 2005. In

reality, the challenges were broader than

this, since the competition facing the Park

was much more diverse – ranging from

new theme parks appearing in the Pearl

River Delta, to new and attractive air

conditioned shopping complexes in Hong

Kong that offer recreational outlets, and to

the growing habit of many Hong Kong

families to travel to resorts across the

Asia-Pacific for long weekend breaks. As

we have prepared the foundation for the

Park of the future, there has been a critical

focus on the Park’s distinctive education

and nature conservation roles.

1. Successful artificial

insemination of

Pacific Bottlenose

Dolphins in captivity

– a world first and a

tribute to the serious

science being

undertaken by [the

Park’s] animal care

team.

2. Accreditation to the

American Zoo and

Aquarium

Association, the first

in Asia for this “gold

standard” in animal

care.

Incoming

Allan

Zeman, JP

I and the new Board inherit a strong

business base in spite of the setback

inflicted by SARS, an enviable reputation

for the Park – particularly on the Mainland

– and a clear framework within which to

give flesh to a vision that can carry Ocean

Park far into the future as the heart of

family leisure in Hong Kong.

2003-

2004

Allan

Zeman, JP

Only as I have visited leading theme parks

and attractions around the world – like

San Diego’s Sea World, Legoland

California, Mandalay Bay in Las Vegas,

and the Marineland Niagara Falls, as well

as the aquarium in Vancouver, Canada –

have I come to fully realize the

exceptional quality of our own Park. Even

at the venerable age of 27, Ocean Park

matches the world’s best in terms of the

rnage of its marine collection, and the

quality and breadth of animal care that

araises out of the Park’s commitment to

education and conservation.

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2004-

2005

Allan

Zeman, JP

We came to the unmistaken conclusion

that Ocean Park really is one of the great

prides of Hong Kong. It is a home-grown

treasure that has brought joy to over 70

million local and overseas visitors

throughout its rich 28-year history.

Almost everyone in Hong Kong has a

special Ocean Park memory and we

believe this is because we have not

wavered from our commitment to

conservation, education and entertainment

– all to provide unique visitor experience.

The result of a master plan that we believe

achieves the objectives of staying true to

our core values of conservation, education

and entertainment while firmly

establishing Ocean Park as the best

marine-based theme park in the world.

1. Unveiling the

Master

Redevelopment Plan.

2005-

2006

Our mission to connect people with

nature, through conservation,

entertainment and education is what truly

differentiates us within the market. As a

bridge to the natural world, the Park

awakens a respect for the beauty of animal

and marine life and in so doing develops

an awareness of the importance of

conservation.

1. Over 14 years, the

Park has welcomed

over 400,000 students

to its behind-the-scene

tours, giving students

of all ages, a

wonderful chance to

learn about nature and

animals in a close and

personal way.

2. Ranked by

Forbes.com as one of

the world’s ten most

popular theme parks.

Source: Excerpt from Ocean Park Annual Report (2005-2014)

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EXHIBIT 3: OCEAN PARK’S FINANCIAL REPORT SUMMARY

Year Revenue

(HK$

million)

Operating costs

(HK$ million)

Surplus

from operations

(HK$ million)

Net Surplus

for the year

(HK$

million)

2013-2014 1,968 1,335 633 96

2012-2013 1,856 1,226 630 127.2

2011-2012 1,598 1,092 505.4 103.3

2010-2011 1,248.7 909.5 339.2 105.1

2009-2010 986.6 750.8 64.4 67.4

2008-2009 893.5 698.9 82 98.6

2007-2008 924.5 654.7 269.8 204.7

2006-2007 845.0 610.8 234.2 171.3

2005-2006 728.3 449.8 133.5 156.5

2004-2005 613.4 378.1 114.4 119.5

Source: Excerpt from Ocean Park Annual Report (2005-2014)

EXHIBIT 4: OCEAN PARK’S TRUST FUND CONTRIBUTION

Year Visitor Numbers

(HK$ million)

Income from

Operation activities

(HK$ million)

Funding from Ocean

Park Trust Fund

(HK$ million)

2013-2014 7.6 652.5 6

2012-2013 7.3 662.5 4.9

2011-2012 7.1 486.7 6.2

2010-2011 7.0 393.5 3.3

2009-2010 5.1 254.3 6.0

2008-2009 200.8 1.9

2007-2008 5.0 323.0 2.7

2006-2007 4.9 2.3

2005-2006 4.3 233.7 15.3

2004-2005 4.0 210.4 10.5

Source: Excerpt from Ocean Park Annual Report (2005-2014)

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EXHIBIT 5: COMMITEES FOR FACILITATING OCEAN PARK’S CHANGES AND EXPANSION

i. Resources Committee – advises the Board on key issues related to the financial and

human resources including the compensation for the CEO, the review and

recommendation to the Board of annual wage increases and other gratuity or bonus

awards for all Ocean Park staff.

ii. Treasury and Investment Committee – oversees the financial progress of the

Corporation, monitors the Cash Reserve position, guides the establishment of

appropriate financing strategy, ensures proper loan management and formulates

investment policies and guidelines for the Ocean Park Trust Fund, the Corporate

Fund and the Retirement Fund selects the appropriate fund managers and evaluates

the Fund’s performance.

iii. Audit Committee – reviews and supervises the Corporation’s financial reporting

process and internal controls on a planned basis, and the appointment of internal and

external auditors of the Corporation.

iv. Development and Tender Committee – advises the Board on policy matters relating to

the adoption of new developments including new attraction, renovation and

improvement projects. It also formulates and modifies, as appropriate, policies and

procedures for the award of tenders, and engagement of architects and consultants,

and reviews any changes that have to be ratified by the Board.

v. Tai Shue Wan Steering Group – advises the Board on any policy matters relating to

the implementation of the Tai Shue Wan Project.

vi. Hotel Steering Group – advises the Board on any policy matters relating to the

implementation of the development of 3 hotels proposed within Ocean Park

including, but without limitation to the format, procedures and strategy of the tender

exercise(s) for the selection of developer(s) and operation(s) for the Hotels Project

and oversees the implementation and delivery of the Hotels Project.

vii. Education Advisory Committee – advises Management in the promotion and

implementation of the Corporation’s Education mandate.

Source: Ocean Park (2014) " Ocean Park Corporation Code on corporate governance practices

", https://www.oceanpark.com.hk/doc/en/footer/OPHK_Corporate_Governance_Code_ENG.pdf

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EXHIBIT 6: OCEAN PARK'S EDUTAINMENT, CONSERVATION AND CORPORATE PARTNERSHIP FACILITIES

Recycle Bins Street Performance

Conservation Kiosk Nostalgia-themed Stores

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EXHIBIT 7A: THE ENVIRONMENTAL MANAGEMENT PROGRAMS

The environmental management programs included

Developing Green Guidelines for internal applications (e.g. environmental procurement

and solid waste management)

Appointing Environmental & Safety Ambassadors for all departments to help monitor

department’s environmental performance

Being the founding member of Green Purchase Charter19

Developing sustainable design checklist and enabling new project design [that] can

comply with sustainable design principles

Conducting carbon audit annually

Training and education

Integrating environmental awareness training session into the staff orientation program,

comprehensive training are also conducted to further promote environmental and

conservation concept for general staff

Raising the guest awareness of environmental protection and conservation Promoting the

importance of a clean-air environment by “Clean Air Outreach Program”

Source: Ocean Park official website,

http://www.oceanpark.com.hk/doc/common/footer/ar/ophk_ar13-14.pdf (accessed 15 May 2015).

19

The Hong Kong Green Purchasing Charter and Hong Kong Green Council was founded by a group of eleven corporations in

response to the 2006-07 Policy Address delivered by HKSAR’s chief executive to appeal “to the trade and industry sectors to

protect the environment in which green procurement methods in operations are highly recommended.” Founding members included Cathay Pacific Airway, CLP Power, Hong Kong Disneyland, Hong Kong Housing Authority, Airport Authority

Hong Kong, Hospital Authority, MTR Corporation, NWS Holdings Limited, Shui On Land, and The Hong Kong and China

Gas Company. Green Council official website, http://www.greencouncil.org/eng/hkgpc/overview.asp, (accessed on 1 June 2015).

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EXHIBIT 7B: THE CARBON REDUCTION PROGRAMS

The carbon reduction programs included

Waste Recycling programs, such as paper, metal, plastic, cooking oil, food waste,

calendars, computers, mooncake boxes, toner cartridges and rechargeable batteries

Energy Efficiency Programs, such as [installing] energy efficient lighting and variable

speed drives on motors

No straw campaign

Promotional programs such as environmental signage for water and electricity saving

Use of green energy such as solar panel for electric cart

Use of electronic means (e.g. email and intranet) for communications

Staff incentive program, to encourage staff to use their own food containers for takeouts

from the staff canteen

Source: HKSAR’s Environmental Protection Department website,

http://www.epd.gov.hk/epd/english/climate_change/ca_partners_O.html#Oceanpark, (accessed 1

June 2015).

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EXHIBIT 8: OCEAN PARK SUSTAINABILITY REPORT SUMMARY

Year Carbon

emission

(tonnes)

Change

(%)

Carbon

intensity

per 1,000

visitors in

tonnes

Change

(%)

Comprehensive

social security

assistance

scheme

(HK$ million)

Annual

Halloween

charity event

fund raising

(HK$ millions)

2013-

2014

54,958 - 3.4% 7.2 - 10.5% > 130 M 1.3 M

Source: Excerpt from Ocean Park Annual Report (2005-2014)

EXHIBIT 9: CSR REPORTING AREAS

Main Area

Sub-category

Environment

1.Conservation

2.Architectural integration (heritage)

Community

1.Community support and charities

2.Employee volunteerism

3.Jobs for handicapped/disadvantaged

Market Place

1.Business partners and suppliers

2.Safety of customers

Vision and Values

1.Mission/vision statement

2.Code of conduct (ethics)

3.Board conducted CSR review

Workforce

1.Employee diversity

2.Family services/employee welfare programs

3.Child care

Source: , J., Okumus, F., and Bilgihan, A. “Corporate Social Responsibility: What are the Top

Three Orland Theme Park Reporting?” vol. 2, no. 3/2010, Worldwide Hospitality and Tourism

Themes, Emerald Group Publishing, p. 320.

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EXHIBIT 10: CORE SUBJECTS AND ISSUES OF SOCIAL RESPONSIBILITY ADDRESSED IN ISO 26000

CORE SUBJECT: ORGANIZATIONAL GOVERNANCE

CORE SUBJECT: HUMAN RIGHTS

ISSUE1: DUE DILIGENCE

ISSUE 2: HUMAN RIGHTS RISK SITUATIONS

ISSUE 3: AVOIDANCE OF COMLICITY

ISSUE 4: RESOLVING GRIENVANCES

ISSUE 5: DISCRIMINATION AND VULNERABLE GROUPS

ISSUE 6: CIVIL AND POLITICAL RIGHTS

ISSUE 7: ECONOMIC, SOCIAL AND CULTURAL RIGHTS

ISSUE 8: FUNDAMENTAL PRINCIPLES AND RIGHTS AT WORK

CORE SUBJECT: LABOR PRACTICES

ISSUE 1: EMPLOYMENT AND EMPLOYMENT RELATIONSHIPS

ISSUE 2: CONDITIONS OF WORK AND SOCIAL PROTECTION

ISSUE 3: SOCIL DIALOGUE

ISSUE 4: HEALTH AND SAFTETY AT WORK

ISSUE: HUMAN DEVELOPMENT AND TRAINING IN THE WORKPLACE

CORE SUBJECT: THE ENVIRONMENT

ISSUE 1: PREGVENT OF POLLUTION

ISSUE 2: SUSTAINABLE RESOURCE USE

ISSUE 3: CLIMATE CHANGE MITIGATION AND ADAPTATION

ISSUE 4: PROTECTION OF THE ENVIRONMENT, BIODIVERSITY AND

RESTORATION OF NATURAL HABITATS

CORE SUBJECT: FAIR OPERATION PRACTICES

ISSUE 1: ANTI CORRUPTION

ISSUE 2: RESPONSIBLE POLITICAL INVOLVEMENT

ISSUE 3: FAIR COMPETITION

ISSUE 4: PROMOTING SOCIAL RESPONSIBILITY IN THE VALUE CHAIN

ISSUE 5: RESPECT FOR PROERTY RIGHTS

CORE SUBJECT: CONSUMER ISSUES

ISSUE 1: FAIR MARKETING, FACTUAL AND UNBIASED INFORMATION AND FAIR

CONTRACTUAL PRACTICES

ISSUE 2: PROTECTING CONSUMERS’ HEALTH AND SAFETFY

ISSUE 3: SUSTAINABLE CONSUMPTION

ISSUE 4: CONSUMER SERVICE, SUPPORT, AND COMPLIANT AND DISPUTE

RESOLUTION

ISSUE 5: CONSUMER DATA PROTECTION AND PRIVACY

ISSUE 6: ACCESS TO ESSENTIAL SERVICES

ISSUE 7: EDUCATION AND AWARENESS

CORE SUBECT: COMMUNITY INVOLVEMENT AND DEVELOPMENT

ISSUE 1: COMMUNITY INVOLVEMENT

ISSUE 2: EDUCATION AND CULTURE

ISSUE 3: EMPLOYMENT CREATION AND SKILLS DEVELOPMENT

ISSUE 4: TECHNOLOGY DEVELOPMENT AND ACCESS

ISSUE 5; WELATH AND INCOME CREATION

ISSUE 6: HEALTH

ISSUE 7: SOCIAL INVESTMENT

Source: Adapted from ISO 26000 Guidance on social Responsibility,

www.iso.org/iso/discovering_iso_26000.pdf (accessed on 1 June 2015).

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EXHIBIT 11: SCHEMATIC OVERVIEW OF ISO 26000

Source: Adapted from ISO 26000 Guidance on social Responsibility,

www.iso.org/iso/discovering_iso_26000.pdf (accessed on 1 June 2015).