CSR Initiatives at HSBC: Making Good Business Sense

As on December 31, 2004, HSBC had an asset base of US$ 1277 billion, a pre-tax profit of US$ 19.4 million (Refer Exhibit I for financial results of the HSBC Group, for the year 2004), and over 10,000 offices worldwide employing 232,000 employees in 76 countries.

The group was one of the largest banking and financial services organizations in the world with well-established businesses in Europe, the Asia-Pacific region, the Americas, the Middle East, and Africa. The History Wall at HSBC's Group Office in London has around 4000 images depicting the origins and evolution of the Group across geographies, historical events like the World Wars, and the changing global economic environment.

There was a need for specialist banking services - preferably from a bank that was locally owned and managed - and the founding of the bank in 1865 was in response to this need. The bank was positioned as a locally based bank operating on sound Scottish banking principles.

The new bank's commitment to local ownership and management required a special arrangement for incorporation.

Rather than operate under the existing British or colonial regulations - which would have required a London Head office, the bank's directors persuaded the Treasury in London to accept incorporation under a special Hong Kong ordinance.