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Hunghom Peninsula in Hong Kong (A), (B) & (C): A Realistic Call for Corporate Social Responsibilities


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  • Terence Tsai

    (Department of Management, China Europe International Business School, 699 Hongfeng Road, Pudong, Shanghai, P.R. China)

  • Shubo Philip Liu

    (Department of Management, China Europe International Business School, 699 Hongfeng Road, Pudong, Shanghai, P.R. China)

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    The residential building complex of Hunghom Peninsula was built under the Hong Kong government's Private Sector Participation Scheme (PSPS) program that was intended to provide housing for middle-class residents at a discounted price. Due to an economic downturn and a shrinking real estate market threatening property values, Hunghom was later sold to the private property developers who originally built the complex. The developers, New World Development Company Limited (NWD) and Sun Hung Kai Properties Limited (SHKP) came up with a reconstruction proposal for Hunghom Peninsula: demolish and redevelop the area into a luxurious private estate.However, the intention to demolish the never-occupied Hunghom Peninsula came under heavy criticism from the public in large part because the demolition process would produce extensive pollution to the environment, which violated both social parties and the companies' corporate mission of being responsible to the society. Under these circumstances, the management team had to withdraw the demolition plan and reconsider their decision. After the developers thought twice about all the relevant parties' interests and took corporate social responsibility into account, they gave up the demolition plan and decided to conduct an extensive internal reconfiguration and renovation to upgrade the property to medium-grade private housing estate standard.Case (A) describes the backgrounds of Hunghom Peninsular Project and its developers, describes Hong Kong's business environment and introduces the three options faced by decision makers. Case (B) reveals NWD and SHKP's choice of the options and the opposition voices against their initial choice. In Case (C) developers give in to pressure from protestors and change their initial decision, in favor of a more environmental option. Case (C) brings the story to a close.

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    Bibliographic Info

    Article provided by World Scientific Publishing Co. Pte. Ltd. in its journal Asian Case Research Journal.

    Volume (Year): 14 (2010)
    Issue (Month): 01 ()
    Pages: 117-140

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    Handle: RePEc:wsi:acrjxx:v:14:y:2010:i:01:p:117-140

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