I am privileged to have the chance to meet with all of you today to discuss the concept of equal opportunities and diversity in the context of a global economy in the 21st century. First of all, I will share with you why I think equal opportunities and diversity are good for business.

RATIONALE FOR EQUAL OPPORTUNITIES

On the individual level, the right to equal opportunities is a universal and fundamental human right. Equal opportunities laws serve to protect the strong as well as the most vulnerable members of our society.

On the collective level, equal opportunity is good for the whole society, because the ultimate value of equal opportunities is about using human resources effectively and developing our human capital.

Equal opportunities are also an essential aspect of business. It is about getting the right person for the right job and increasing productivity and competitiveness. It means increasing the market share and enhancing brand name value. Equal opportunities in the new millennium are about economic efficiency. As work becomes increasingly "knowledge-based", requiring higher levels of skills, it is essential that we allow each individual to realize his or her full potential. Employers need to ensure that they make their recruitment and promotion based on merit and create an environment in which all individuals can develop.

Employers should not be looking to change because the law is forcing them into it. They should choose to embrace diversity in order to realize particular business benefits; the stimulus for change must be internal not external. It is time for employers to claim the issues of equal opportunities and diversity as their own – it is not only the right thing to do, it is a business necessity.

GLOBALISATION AND SOCIAL ACCOUNTABILITY

The process of globalisation has brought about intensified economic interdependence and intensified competition on a global level. The 20th century saw unparalleled economic growth, with global per capita GDP increasing almost 5-fold (IMF, 2000). However in recent years, there has been a backlash against globalisation, as the economic progress is not evenly dispersed. The gaps between rich and poor countries, and the rich and poor within countries, have widened. The push for competition, deregulation, privatization and open capital markets undermines the economic prospects for many poorest people in the world.

The weaknesses of globalisation are acknowledged internationally and point to the fact that business can no longer operate without due focus on social accountability. Businesses do impact on individuals, communities and the environment. Hence, social accountability and equal opportunities are important. Not only do they provide an enabling and empowering framework for the individuals to benefit from economic development, they also allow different spheres to coexist by providing a level-playing field for all.

As a matter of fact, social accountability can be used as a tool for improving business performance. Diversity can also help retain the best employees, improve a company's image and its marketability. Business now recognizes that consumers are increasingly demanding that the food they eat, the clothes they wear and the products they use are manufactured under ethical working conditions. Market share and brand name value depend on consumer acceptance of a company's employment policy, servicing standards and manufacturing conditions. Failure in these areas can sometimes lead to consumer boycotts.

A survey conducted by Edelman PR Worldwide last year further illustrated that consumers are putting more emphasis on a company's social accountability. In the survey, it was found that non-governmental organizations, such as Greenpeace and Amnesty International, have earned a greater level of trust than some of the most well-respected global multinational companies such as Ford and Microsoft. It is noteworthy that the respondents were well educated, media attentive individuals between the age of 34 and 64 from 5 industrialised economies.

GLOBAL COMPACT

At the international level, the United Nations Secretary-General, Kofi Annan, challenged world business leaders at the 1999 Annual Meeting of the World Economic Forum at Davos, to initiate a Global Compact of shared values and principles to give a human face to the global market. For the community in Hong Kong, we have been advocating three principles of the Global Compact:

Businesses should support and respect the protection of international human rights within their sphere of influence; and

• Make sure their own corporations are not complicit in human rights abuses; and
• Eliminate discrimination in respect of employment and occupation.

Mr. John Ruggie, the Assistant Secretary-General of the United Nations, told us two months ago that 400 companies, mainly from the Fortune 500 group, have signed up to join the Global Compact. Two major Hong Kong companies, the Hongkong and Shanghai Banking Corporation and the Esquel Group, have also joined the lengthy list.

DIVERSITY BENEFITS BUSINESS

Equal opportunities means focusing on abilities, regardless of a person's gender, marital status, disability or other irrelevant criteria. This will not only expand the pool of talents available to employers in an age when human resources is the most important business resource, the best person hired may also identify market niche and bring in new business.

In Hong Kong, we are campaigning for "IT for all" on the basis of individual rights and market share. IT accessibility is important for the visually impaired and those without the dexterity to control the keyboard, as they rely heavily on IT not only for information but also for daily electronic transactions. Breaking the barriers means business, a market share with a captive consumer base. Similarly, we are advocating barrier free access to shopping centers, as wheelchair users are loyal customers.

Business is also looking more closely at women as a market as they are consumers and spenders for the household. More women are now buying insurance and financial products and business must cater for their need to increase the market share.

In fact, many international companies have found that equal opportunities policies have positive impact on sales as well. For example, Pizza Hut in Australia recorded sales increases directly attributed to brand loyalty through the employment of people with a disability.

According to a study by Covenant Investment Management in 1996 on Standard and Poor's 500, it found that the annual return for the 100 companies which rated lowest in equal employment opportunities issues averaged 8%, compared to 18% of the 100 companies that rated high in their equal employment opportunities. The figures are clear: diversity pays; it brings in income and economic success. Today, 93% of Fortune 500 companies have instituted diversity programmes in their organizations.

As Hong Kong becomes increasingly globalised, the ethnic make-up of the community is likely to change. Hong Kong is home to a diverse range of communities from Japan, the Philippines, Indonesia, Thailand, Nepal, Pakistan, Britain and a lot more. The racial diversity provides a unique value. It is our link to our trading partners and strengthens Hong Kong as the global trader.

The EOC believes that race discrimination law is needed to protect the interests of ethnic minority communities and to enhance Hong Kong's international image.

EQUAL OPPORTUNITIES COMMISSION

At this point, I would like to talk about the EOC, our values and our work and how these relate to a diverse environment in which business operates.

Established in 1996, we are a statutory body to administer the three ordinances, that is, the Disability Discrimination Ordinance, the Sex Discrimination Ordinance and the Family Status Ordinance in Hong Kong. Our work is based on a belief that everyone should have the right and fair chance to participate in the social, political and cultural life of Hong Kong.

When a person lodges a complaint with the EOC,we are required by law to conduct an investigation into the complaint and endeavour to settle it by conciliation. It conciliation is not successful, the applicant may apply to us for legal assistance to file civil suit in District Court.

Conciliation is based on the notion of "restorative justice" which works toward restoring victims, empowering them and responding to their needs, as well as supporting offenders and encourage them to understand, accept and carry out their obligations. In 2000, 61% of the cases that proceeded to conciliation were successfully conciliated. Depending on the circumstances, the terms of settlement vary, including reinstatement, monetary compensation, change of policy, provision of training, donations to charity, oral or written apology. However, Hong Kong is not open to the kind of damage claims like that in the U.S., we do not open class actions nor treble damage suits.

IMPLEMENTING EQUAL OPPORTUNITIES POLICY

To assist employers implement equal opportunities practices, the EOC has published three Codes of Practice on Employment and eleven leaflets under the Good Management Practice Series on topics like Recruitment Advertisements, Interviewing Procedures, Pre-Hiring and Post-Hiring Procedures. These publications provide guidelines to prevent discrimination.

In the near future, we plan to work with the business community in establishing equal opportunities standards. As we find that the community is asking for more in-depth public education such as consultancy on policy development and training, the Commission in future will provide a fee-based service for such activities.

CONCLUSION

Equal opportunities is not purely about meeting legal requirements, it is also a business issue – essentially about ensuring that an organization has the skills it needs to develop and grow. Everyone in the organization has a role to play, not just the management, or the human resources department. Equal opportunities are about creating the appropriate environment so that each individual can fulfill his or her potential.
To survive and excel in a highly competitive environment, a business has to focus on getting the best talents. The organizations that will succeed in the future are those that can harness human diversity to advantage. Instead of trying to eliminate differences, it positively welcomes them. The "diverse organization" is the organization of the future and diversity will be part of the formula for success in the new millennium. Thank you.

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