Ms. Malini Thadani
Senior Vice President - Public Affairs HSBC

What is HSBC's vision and mission regarding CSR ?
HSBC is the world's local bank headquartered in London with international network comprising of more than 10000 offices in 76 countries. The HSBC group is committed to support the community through philanthropy and sponsorship in every area where it operates.

Our main focus is on education of less fortunate and the environment. In India, HSBC has contributed to the work of NGOs which concentrate on primary and secondary schooling of the underprivileged and which support children who are mentally and physically handicapped.

We have over 37 branches in 18 cities across the country and soon 20 cities will be covered. The first step we take when we enter a city is to establish contact with other organizations in that community to work out linkages.

Can you tell us more about your education related initiatives ?
We have several education initiatives running. We support those organizations which concentrate on primary and secondary schooling of the underprivileged, impart informal learning to foster an understanding of hygiene, health and nutrition and assist children who are mentally and physically handicapped. We have supported some institutions like Happy Home and School for the Blind in Mumbai, Future Hope in Calcutta, Prayas in New Delhi, SOS Children's Villages of India in Jaipur and in many more cities.

HSBC promotes the pursuit of excellence by awarding 4 half scholarships to the Indian School of Business in Hyderabad. It has also instituted the HSBC Scholarship for two students to study at Oxford, Cambridge or London Universities in UK. While the students can study any subject of their choice, they must demonstrate wither by deed or potential, the capacity to lead and to make impactful contributions to the community. The program is in its third year and till now we have supported six students. All students have specialized in different areas like Physiotherapy, Human Rights, architecture and urban design, and social work.

How many NGOs do you partner with for your education initiatives ?
In 2003-04, we supported some 40 NGOs in the 18 cities where we operate. They help in improving linkages and therefore we welcome such alliances.

What was unique about the program launched in Hyderabad in July last ?
This program is quite unique as it will allow private schools that admit children of low-income families to get financial aid from the bank to improve their infrastructure. HSBC in collaboration with Centre for British Teachers (CfBT) launched this project that will facilitate private schools to get micro finance from HSBC.

Along with the loan, these schools will be given specialized inputs to improve their teaching skills and quality of education. The pilot project will be implemented in Hyderabad and Chennai and will later be rolled out in other areas of Andhra Pradesh and Tamil Nadu. The first phase of the loan will be disbursed on Children's Day (November 14) this year.

So far people have talked about micro credit and micro finance in the field of agriculture, self-employment women's groups etc. For the first time it will be provided in the area of education catering to schools rather than individuals. Partnering with an educational support organization will provide added inputs to help improve the school's educational capabilities and the quality of education they impart.

Can you tell us about your environmental initiatives ?
We recognize our responsibility towards conservation of environment. We have initiated interesting environmental projects. In a recent initiative, HSBC funding has helped two villages to introduce rainwater-harvesting methods in an arid part of Maharashtra in Raigad district. To harvest the water, check dams are made which hold water closer to the village and it saves the women the effort of going far to fetch water thus giving them more free time. This free time can be used in looking after their children's interests and education. They can also use their spare time in self-empowerment and employment activities. Thus wider social issues can be addressed this way. In April, twenty HSBC volunteers spent weekends with these villagers preparing ground for tree plantation. On 14th and 15th August same team went for tree plantation and spent time with villagers.

To support water conservation for animals, HSBC with WWF is making check dams in Sariska tiger resort at Rajasthan. These check dams will make water available for animals.

With the help of Wildlife Protection Society of India, HSBC is attempting to protect the endangered Olive Ridley Sea Turtles in Orissa. HSBC is supporting this initiative by funding the education program developed by Wildlife Protection Society of India for sensitizing the local community towards turtle conservation.

The HSBC Group has committed USD 50 million to an environment programme called Investing in Nature. One of the elements of this initiative is a Botanical Gardens programme. Botanical Gardens Conservation International is working in association with the National Botanical Research Institute (NBRI), Lucknow to develop a program to promote the study and conservation of plants and establish a network among botanical gardens in India. India will receive a sizeable portion of a USD 11 million dollars grant world wide, as part of this project.

HSBC has partnered with Earthwatch to allow its staff from all around the world to volunteer on the teams of vital conservation research projects worldwide. In its first year, Earthwatch selected 12 staff members from India for the HSBC Employee Environmental Fellowship. These employees participated in scientific field projects across the world. Twenty staff volunteers were selected to participate in the program in 2003 and this year forty five volunteers are participating. Working on this kind of a project is an experience of a lifetime for a volunteer. These volunteers will be forever sensitized and committed to the cause of environment conservation. They share their experiences with people around them and that will spread the awareness on environment. In our quarterly newsletter we dedicate a couple of pages to our Earth Watch fellows.

What is the typical involvement of your NGO partner ?
Our involvement with our partners is that we provide support to their initiatives and projects. We prefer to support NGOs directly because we will then know the details of the project and can identify exactly where our money is spent. In most cases we work directly with NGOs.

Immediately after the devastating earthquake in Gujarat, the HSBC Group collected contribution from its staff around the world. Over US $450,000 were donated towards education and rehabilitation projects. With the help of Partners in Change, we identified a project initiated by an NGO called Gantar based in Ahemdabad. Gantar was setting up teachers training institutions at edge of Rann of Kutch. We helped Gantar set up that facility. It will train local volunteers to provide the children of poor salt pan workers with non-formal education. Gantar sends teachers to go out and teach these children in Rann so when they come back to villages and schools; they can match up to the curriculum in local schools in the area.

Do your employees volunteer with your NGO partner? How do you facilitate the process ?
'Helping Hands' is HSBC's corporate volunteer program that fosters staff volunteerism to address the issues of community concern. HSBC staff volunteer their time and skills to organizations. We have a list of NGOs working in different fields and volunteers can select an NGO based on area of their interest and convenience to travel.

In the Door Step School, eight volunteers regularly spend time on Saturday afternoons, teaching English language reading and writing skills to the children through interactive mediums such as drama. Volunteers further assist the teachers in improving their English skills and help the older students looking for employment by sharing their know-how on formal letter writing, applications and interviews.

By tying up with NGOs working for child welfare, Magic Bus reaches out to Mumbai's less privileged children. They provide gateways in which the children are taught life skills through outdoor activities, drama and team building exercises. We are looking at introducing one volunteer day for our staff. Before that we want to make sure that staff is keenly interested in volunteering. We have started with a volunteer's group.

We are expanding this Helping Hand volunteering program to other cities as well. It is very active in Bangalore, Delhi and Calcutta. This year and last year students from the S.P Jain Management Institute worked with us on these staff volunteering projects. I am most impressed with the3 DOCC programme at the SP Jain Institute, whereby all their management students get to work on a community project.

How do you evaluate your CSR program ?
We evaluate our programs on the basis of the contribution we made to the community and the benefits derived due to our participation in the project. Over a period of time we would like to have an association so that we can see the benefits or improvements that have been effected as a result of our participation in the programs. That is how we evaluate our programs.

How do you measure the impact of your work ?
We try and measure the impact of our work according to impact measurement standards, which take into account the money spent in the area and the number of beneficiaries. We also look at opportunities for staff participation in volunteering on some of these projects.

How do you select partner NGOs ?
In every city where we work, we look for an organization working in the area of environment and education. We select our partners mainly through word of mouth. On hearing about their work and project, we inspect the work that they are currently involved in. After a satisfactory assessment, we select our partner.

Do you have policies on child labor, disaster management, employing disabled, environment, and sexual harassment…?
Can you share these policies with others ?
We do have internal policies on the issues mentioned. HSBC never hires child labor. Immediately after the disastrous earthquake in Gujarat on 26th January 2001, the HSBC Group collected contributions from its staff around the world, to help provide assistance to the victims of the earthquake. The total funds raised amounted to US $425,000. Even during Orissa cyclone, HSBC helped in disaster relief. We are very conscious of our role in employment of disabled. In our software development centre at Pune, 4 to 5 people employed are physically disabled persons possessing the required skills. On sexual harassment we have an internal policy in place if any such issue comes up.

What is the level of involvement of HSBC top management in CSR program ?
At HSBC, involvement in CSR program is from top to bottom. Commitment to social issues starts from the Chairman of HSBC worldwide and the Chief Executive. They are hugely sensitive to and conscious of their responsibilities.

Our Chief Executive in India Mr. Niall SK Booker is driving our CSR initiatives towards environmental projects and programs. He passionately supports environmental initiatives.

Our Deputy Chief Executive Mrs. Kidwai spends a lot of time supporting CSR initiatives. She is on the advisory board and the governing board of many charitable organizations. Top down, there is great awareness and involvement of HSBC employees in CSR activities.

What is the level of involvement of individual HSBC employees in your CSR program ?
In all the cities where we are operating, participation of employees in CSR activities has been very good. They are very sensitive to the issues and they want to be involved voluntarily in CSR activities.

To strengthen the business relations, one of our colleagues with her team was invited for dinner by our client. She suggested to the client that instead of going out for a corporate meal, they should go together to an NGO or charity with their teams. Both teams went to an NGO called Premdan in Bandra. They spent a Saturday afternoon there. With this a closer relationship was established between both teams. It was really encouraging and they want to do it again.

Do you have payroll - giving program ?
No we don't have a pay roll giving program.
( Please note that this interview was taken before HSBC launched its PRG in 2005 )

How does HSBC look at ethics and CSR ?
Good governance, integrity and sound ethics are cornerstones of HSBC's value system. HSBC has been functioning with a strong sense of Corporate Social Responsibility (CSR) since its inception.

Indeed the principles, if not the language, of CSR can be traced back to our earliest days. The reputation we enjoy today owes much to the high standards of behavior set by our founders and good behavior is the essence of corporate responsibility.

Do you employ differently abled ? How ?
As mentioned earlier, we have employed physically disabled persons at our Pune office. We have a Diversity Committee that examines this aspect of hiring.

You have reduced the wastage of plastics in your offices by using tea/coffee mugs. What kind of resistance did HSBC face from employees ?
What would be the volume of plastic saved ?
We did not face any resistance from employees. Earlier we were using disposable plastic mugs to serve tea/coffee, but now we all use mugs. We have calculated that a large volume of plastic will be saved with this change.

How does HSBC look at supplier policy and CSR ?
The environmental impact evaluation is done by our credit team. Before giving out any loan, our credit risk management team undertakes environment impact assessment.

How can NGO credibility be enhanced ?
To be credible, NGOs must be transparent. Transparency lies in being able to demonstrate what they are doing and how they are doing it. Any NGO undertaking socially relevant activities will have some administrative expenses, there must be prudence in managing the same and it must be demonstrated both in action and in deed. Accounting must be proper and simple so that it is understood by partners, donors and other authorities. NGOs must be able to explain clearly how the beneficiaries will benefit from the project and the difference that they can make to the community. End use of money should be properly directed, evaluated and assessed.