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Following is the speech by the Chief Executive, Mr Donald Tsang, at the Directors' Conference 2008 - "Directorship in the 21st Century", organised by the Hong Kong Institute of Directors at the Hong Kong Convention and Exhibition Centre this morning (April 9):
Mr Peter Wong, Mr Moses Cheng, distinguished guests, ladies and gentlemen,
Thank you for the invitation to speak to you today. It is always a pleasure to meet our directors and share ideas on how businesses can keep moving with the times, especially these days given the rapid pace of development.
In keeping with the theme of this conference, "Directorship in the 21st Century", I will talk about two of our most important goals, namely to achieve economic development that is sustainable and, in parallel, build a more harmonious society.
In both cases our directors and the companies they represent have an indispensable role to play.
Hong Kong's competitive edge as an international centre for business and finance lies in our core values and strengths – including a world-class financial infrastructure, level playing field for business and entrepreneurs and professionals who uphold best practices in corporate governance.
As 21st century directors, corporate governance will undoubtedly feature high on your list of priorities. Good corporate governance starts inside the boardroom. Shareholders rely on directors to exercise due care and diligence in building a company. They depend on your vision and guidance in developing new markets and products. At the same time, you are entrusted with designing and implementing proper internal controls, and ensuring that the company operates in a fair, orderly and effective manner.
Through your commitment to corporate governance, you directly contribute to sustaining the economic development of Hong Kong, and ensuring that we continue to be highly attractive to local, regional and international investors alike.
But the work of the Board of Directors goes beyond corporate governance measures that protect company interests.
Business leaders in the 21st century must also consider wider responsibilities when assessing the impact of their business decisions on employees, the environment and the community as a whole.
It is encouraging that many of our business leaders are increasingly ready to embrace their corporate social responsibilities, and are doing so in a variety of ways. Some take environmental and community concerns into account during decision-making. Others offer volunteering services or donate to charities. And there is growing collaboration between companies and NGOs to address local needs and develop new ways to make our community a better place to work and to live.
I applaud these initiatives.
Corporate social responsibility, or CSR, may mean different things to different people. How it is put into practice often depends on the unique circumstances of your business. But if done with commitment, studies have shown that CSR would boost team building and staff morale. It can increase productivity, attract talent and reduce business risks by improving transparency.
Enterprises with a strong focus on CSR often enjoy a more positive corporate image that attracts new customers and promotes new opportunities. Ultimately, if our companies are in harmony with their staff, clients, the community and the environment, our entire society benefits.
Ladies and gentlemen, I encourage you to continue exploring new and innovative ways to engage your companies with the wider community. As you grow your businesses, I ask that you consider ways to contribute to a more caring and harmonious society in your daily operations.
I congratulate the Institute of Directors on organising this conference. I am grateful for your dedication and hard work in establishing Hong Kong as a regional leader in good corporate governance.
I look forward to your continued support so that we can ensure sustainable economic development for Hong Kong and build an increasingly harmonious society.
Thank you.
Ends/Wednesday, April 9, 2008
Issued at HKT 10:48
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