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SUN HUNG KAI PROPERTIES: CREATING VALUE IN SUSTAINABLE DEVELOPMENT

Reference No. 17/005 Publication Year 2017
Author(s) Yihong Yao, Ariel Li
Company SUN HUNG KAI PROPERTIES LIMITED
Industry Property Development
Geographic setting Hong Kong
Functional Area CSR/ Sustainability

Synopsis

Sun Hung Kai Properties Limited (SHKP), a Hong Kong listed company, was ranked as one of the market leaders in local property development. During decades of development, SHKP not only actively engaged in property development but also engaged in vertical business integration, expanding its business to land acquisition, construction material sourcing, project planning and management, agency services, and property management. The company has long held five core values in conducting its business: “building homes with hearts”, “customer first”, “speed, quality, efficiency”, “continuous improvement” and “team work”. These values played key roles and worked as cornerstones of the company’s long-term sustainable development. In practice, SHKP has integrated sustainability, particularly social and environmental sustainability, into its core businesses and devoted itself to creating sustainability values for the environment, people (employees), customers, and community. In the long term, SHKP considers sustainability an integral part of the company’s development philosophy, and in turn makes a variety of efforts to generate sustainable value for its stakeholders, finally benefiting all of society.

Learning Objective

This case describes approaches that SHKP adopted for sustainability planning and sustainable development. This case also illustrates how SHKP created values during sustainable development. By reading this case, students have an opportunity to learn about SHKP’s businesses, its sustainability strategies and practices, the engagement of stakeholders in sustainable development, and value creation through sustainable development. This case could be used for class discussion for Master’s programmes. Student will be required to understand Drucker’s thoughts on CSR and sustainability, different aspects of ESG matters in sustainable development, value creation through sustainable development, and improvement of sustainable development outcomes through best management practices. Student will also be required to critically analyse and critically review SHKP’s strategies and practices on sustainable development.

 

Suggested Questions:

1. Discuss what roles the governance at SHKP played in its sustainable development.

2. Critically evaluate the approach taken by SHKP in its sustainable development planning and sustainability reporting.

3. Analyse the approach taken by SHKP in creating values through sustainable development.

4. Discuss challenges that SHKP faced when implementing its sustainable development strategies and recommend how SHKP could improve sustainable development outcomes through best management practices.