ASSESMENT 2 – Report
By Brenda Widjaja

Lala
Director, Corporate Communications South Africa
HSBC
Mandela Rhodes Place
Cnr Wale Burg Street
Cape Town
South Africa

April 23, 2012

Mrs. Grace
Executive of the Local Network
3rd Floor, MPF House
32 Princess of Wales Terrace
Sunnyside Office Park
Park town

Dear Mrs. Anne Marie Gutierrez, Executive of the Local Network
Submission to Johannesburg the Local Network of South Africa
This proposal is presented to the local network of South Africa in order to against human rights and environment cases. According to the United Global Compact, HSBC strives to encourage the changes of human rights and environmental cases to the better side. HSBC is supporting to the first of ten principles which is “Business should support and respect the protection of internationally proclaimed human rights” and also the eighth principles which says that “Business should undertake initiative to promote greater environmental responsibility” (Ten Principles 2012).
In 2007, HSBC has encouraged the changes in the environmental cases by cooperating with First Direct, they plant for more than 20.000 trees in each country (First direct 2010). They also encourage their customers to switch to use online banking. More than one million of HSBC and First Direct customers switch to use online banking.
On the other hand, there is a risk of doing this system. More than 3.1 million customers are left from the HSBC members (Espiner 2006). This is caused by a hacker attack on its servers (Espiner 2006). As a leading bank name, HSBC seeks to improve the security of online baking by cooperating with independent association.
South Africa is facing problems such as hunger and children abuses. There are also environmental problems that happened in Africa such as difficulty to get clean water and high rates of air pollution. Moreover, by looking at the existing conditions in South Africa HSBC has planned a new program to reduce the problems that exist in that country.
Starving is one of the major cases that happened in South Africa. Many children are suffering because they do not have enough nutrition. They have lack of attention of government who supposed to protect them. This condition can also affect to the amount of population growth. It also can be linked to against the human rights because as the law of the human rights, human deserve to live in decent. By focus on that case, in the state of South Africa there are many malnutrition cases caused by hunger problem, therefore HSBC plans to make a donation program in cooperation with related associations and sponsors.
Specific to solve the problem, there is a way that may be taken by HSBC is working with the existing restaurants such as Pizza hut and Mc. Donald to donate by giving a donation box that can be filled by volunteer. Secondly, Pizza hut and Mc. Donald will also donate a healthy foods but it is not fast food. This program is called “Distributing a Good Service, Achieving Good Resources”. In order to encourages and make these happen, HSBC will donate 1% of their profit. These programs are conducted to reduce the number of malnutrition and improve the responsibility of the society. There are three stakeholders that will receive the benefits. Some of the benefits that the government gain are decreasing the number of death and economic cases. For the company itself, they will get good well because they have helped for charity cases. For the citizen, they can get better life.
In addition, there is another case that happened in South Africa which is children abuses. Mr. Joseph Kony is one of the rebel leaders who did children abuses for many years. Many people are suffering because they lost their children. More than 30.000 children are abused (Kony 2012). According to that problem, HSBC makes a new program “Save Our Generation” to against Kony by making a social association that can improve their life quality and get better education. HSBC will corporate with Foundation Children of Africa (FCA) to support the human rights for children. HSBC will donate US $600.000 for education and home for children.
This project is aimed to create a new society for children and make them live without mental pressure. There are also some benefit for the government, citizen and company. For the government, they can avoid the children abuses that can increase the criminality in that country. For the citizen, they can live with safety because their children are safe with them. For the company they will get trustworthy from their customers.
Furthermore, as an explanation of principle eight, HSBC is providing clean water could improve the quality of life in South Africa. Many people are suffering even the babies also get suffer because they consume dirty water which is not good for their growth. Almost one billion people cannot have clean water even for washing. Many of water in South Africa undrinkable so that as a company which has responsible to the environment want to help them by making clean water and make it drinkable. “One change step” is the slogan of this program so that people will excite to support this program. Mineral water company will be one of the sponsored that HSBC will cooperate with. HSBC will cooperate with Aqua Mineral Water to supply the clean water.

Moreover, HSBC and Aqua will create a new technology on the land of three hectares with an estimated cost of US $1.000 million. This new machine will be made by expert’s graduates of prestigious university such as American University of Technology in America, RMIT University in Australia and University of Indonesia in Indonesia. The expert’s will examine the technological advance for the project to be implemented in 2012 precisely in November. By consuming clean water people can help themselves to against the diseases. The benefits for the government, they can maintain their citizen to produce the healthy life.

Due to the environmental cases, South Africa is also facing the air pollution. Based on Environmental Protection Agency of United States (EPA), Africa is one of the highest rates of population growth and urbanization in the world (EPA 2012). As a result of a huge population, the numbers of using vehicles are also increase. According to them, South Africa has 99.4MMT carbon or 42% of Africa country’s in total. By focusing on that case, HSBC wants to make a new program by cooperating with EPA and Hyundai. This company will make technology that can detect the pollution rates based on that they can make the hybrid vehicles.

This program will be estimated spend US$1 million and will be started on February 2013 because they have to do the research about the pollution rates. Some benefits that will be obtained by Government and Citizen are improves the healthy life and life in the fresh air. For the company, they will earn good well because they has helped the country to get a better life.

In spite of these, there are some risks that will happen. First, HSBC will be got some difficulty to get the trustworthy from the sponsors. Second, they also get difficulty to have donation and responsible from the customers. However, HSBC has to solve these problems and make it happen.

In conclusion, HSBC must present the responsibility to reduce the risks. HSBC also have to make the customers trust them so that HSBC can easily creating some charity activities and the customers willing to support.

Your sincerely,
LALA
(Lala) DIRECTOR OF CORPORATE COMMUNICATION References: EPA: Africa air quality.2010. Accessed 20th http://www.epa.gov/international/air/africa.htm Espiner.Tom: HSBC accused of ‘scandalous’ security glitch.2006. Accessed.20th http://www.zdnet.co.uk/news/security-management/2006/08/10/hsbc-accused-of-scandalous- security-glitch-39280707/ First Direct: HSBC and First Direct launch new programme to cut paper use. 2010. Accessed 19th http://www.newsroom.firstdirect.com/press/release/hsbc_and_first_direct_launch_n Page.Andrew: Kony 2012. 2012. Accessed 21st http://knowyourmeme.com/memes/events/kony-2012 United Global Compact. Ten principles. 2012. Accessed 19th http://www.unglobalcompact.org/AboutTheGC/TheTenPrinciples/index.html