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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.
To order this case, please contact Centennial College, c/o Case Research Centre, School of Management, Centennial College,
Wah Lam Path, Pokfulam, Hong Kong; phone: (852) 3762 6284; website: http://cases.centennialcollege.hku.hk .
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
reproduced or transmitted, in whole or part, in any form or by any means, whether electronic, mechanical, photocopying, recording, web-based or otherwise, without the prior permission of Centennial College.
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
Ocean Park Hong Kong: Corporate Social Responsibility (“CSR”) in Its Corporate DNA (Ref.: 16/002C)
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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).
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