A MEMBER OF THE UNIVERSITY OF KONG GROUP 香 港 大 學 機 構 成 員

AMY YIP ELSHA YIU

OCEAN PARK : 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

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Ocean Park Hong Kong: Corporate Social Responsibility (“CSR”) in Its Corporate DNA (Ref.: 16/002C)

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 allotted a piece of land and the 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 became one of the largest 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,” “ 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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Ocean Park Hong Kong: Corporate Social Responsibility (“CSR”) in Its Corporate DNA (Ref.: 16/002C) 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 , it took fourth place, and in Greater China, it ranked first.

The Park also began to receive local and global awards. The 2012 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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Ocean Park Hong Kong: Corporate Social Responsibility (“CSR”) in Its Corporate DNA (Ref.: 16/002C) 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  Manage the execution of plans for CSR programs and Committees  Drive interdisciplinary and inter-departmental efforts Role of Education Advisory  Advise Management on the promotion and Committee 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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Ocean Park Hong Kong: Corporate Social Responsibility (“CSR”) in Its Corporate DNA (Ref.: 16/002C) 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 .

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 (), 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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Ocean Park Hong Kong: Corporate Social Responsibility (“CSR”) in Its Corporate DNA (Ref.: 16/002C)

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- Philip Chen It was agreed that Ocean Park’s reputation 1. The Government’s 2002 Nan-lok, JP as a globally-recognized oceanarium Task Force on should if possible be used as a foundation Redevelopment of for development, and that our role in Ocean Park and conservation and education should be Tourist Attractions in protected. Aberdeen.

2002- Outgoing A Park that for a generation had sat close 1. Successful artificial 2003 Philip Chen to the hearts of most Hong Kong families insemination of Nan-lok, JP as a prime locus for family fun and nature- Pacific Bottlenose focused education faced new and serious Dolphins in captivity challenges. In the public mind, these – a world first and a challenges appeared to be driven by the tribute to the serious planned opening of Disney in 2005. In science being reality, the challenges were broader than undertaken by [the this, since the competition facing the Park Park’s] animal care was much more diverse – ranging from team. new theme parks appearing in the Pearl River Delta, to new and attractive air 2. Accreditation to the conditioned shopping complexes in Hong American Zoo and Kong that offer recreational outlets, and to Aquarium the growing habit of many Hong Kong Association, the first families to travel to resorts across the in Asia for this “gold Asia-Pacific for long weekend breaks. As standard” in animal we have prepared the foundation for the care. Park of the future, there has been a critical focus on the Park’s distinctive education and nature conservation roles. Incoming I and the new Board inherit a strong Allan business base in spite of the setback Zeman, JP 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- Allan Only as I have visited leading theme parks 2004 Zeman, JP 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- Allan We came to the unmistaken conclusion 1. Unveiling the 2005 Zeman, JP that Ocean Park really is one of the great Master prides of Hong Kong. It is a home-grown Redevelopment Plan. 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.

2005- Our mission to connect people with 1. Over 14 years, the 2006 nature, through conservation, Park has welcomed entertainment and education is what truly over 400,000 students differentiates us within the market. As a to its behind-the-scene bridge to the natural world, the Park tours, giving students awakens a respect for the beauty of animal of all ages, a and marine life and in so doing develops wonderful chance to an awareness of the importance of learn about nature and conservation. 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 Operating costs Surplus Net Surplus (HK$ (HK$ million) from operations for the year million) (HK$ million) (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 Income from Funding from Ocean (HK$ million) Operation activities Park Trust Fund (HK$ million) (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 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 Change Carbon Change Comprehensive Annual emission (%) intensity (%) social security (tonnes) per 1,000 assistance charity event visitors in scheme fund raising tonnes (HK$ million) (HK$ millions) 2013- 54,958 - 3.4% 7.2 - 10.5% > 130 M 1.3 M 2014

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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