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Chief Secretary for Administration Donald Tsang made two appeals to the business community at a General Chamber of Commerce lunch today. First, he asked them to sustain their long-term competitiveness by investing more in their own workforce - not laying off staff but retraining them if necessary, and providing placement programmes for young graduates and school leavers.
Second, he asked business leaders to participate actively in Hong Kong's political scene.
"The public is demanding greater inclusion, transparency and openness in our political development and policy making," Mr Tsang said. "In this climate, business also needs to rethink how it handles such demands. The approach of business so far to politics has tended to be rather reactive, conservative and behind-the-scenes. But this could be counter productive."
He said now is the time for business to step up to the plate if it wants to help shape Hong Kong's future.
"If business feels it should have a say in how the government formulates and implements policy then business needs to speak up - publicly, collectively and coherently. If business wants political parties to champion their cause then business needs to engage the political parties and convince them why championing the cause of business is good for Hong Kong and its people.
"Business people need to shed their anxiety and fear that if and when they step into the political arena, it will give rise to a perception of a collusion of business and political interests. In open society, every sector is a legitimate player in politics. But to be a player you must do so in an open and public manner. To the government, it is always important to maintain transparency and a level-playing field for all."
Business must adapt as HK heads towards universal suffrage
Mr Tsang noted that functional constituencies will remain for the 2004 and 2008 Legislative Council elections, "so business, commerce and professional groups will maintain a direct line in the legislative process and in performing a 'check and balance' function on the Government."
As Hong Kong heads down the road to its ultimate goal of electing all LegCo members by universal suffrage, functional constituencies will have to evolve with this process, he said.
"The business community as a whole needs to start thinking about how it deals with this change. It must be prepared to get more involved. For example, business can do more to nurture and support political talent and parties. Business can do more to establish or support research institutes or think tanks that in turn would help to lift the quality of policy debate and deliberation in Hong Kong. Business can do more by speaking up on important issues that extend beyond their ambit of influence or interest, particularly if those issues have an impact on Hong Kong's competitiveness and attraction as a world city," he said.
"The Government needs to hear your views, the public needs to hear your views, on how we can maintain Hong Kong's energy and vitality and viability, not just in the economic realm, but in the social and political realms as well. In my view, a more vocal, community-spirited and transparent business lobby would garner public trust, which in turn would help dispel any misconceptions about collusion, or a political 'free lunch'."
Let the public know how business causes benefit community
Business needs to take a more pro-active approach in stating and explaining their legitimate causes, Mr Tsang said, while at the same time engaging the public by explaining how and why these causes will benefit the community.
This appeal for business to get involved in politics applied equally to other sectors, he stressed - "to the grass roots organisations, to social and welfare groups and organisations, to the professions, to academics and students, to blue and white collar workers, to politicians and the political parties themselves."
Mr Tsang recognised the past two years had been fraught with economic problems but also serious challenges on the political front.
Position papers from business welcome
"We have all become highly sensitive and perhaps exhausted by the continuous political bickering and confrontation. In response, the Administration has worked hard, and is changing its style of governance," he said.
As the Constitutional Development Task Force - which Mr Tsang heads - starts holding focus groups to seek more views and input on the way forward, he will look forward to the business sector playing an active part in the process.
"The General Chamber of Commerce has been playing its part and has urged its members to provide input and constructive comment. We wholeheartedly welcome more of you to participate. I look forward to receiving your position papers on this," he said.
Firms urged to help reduce jobless rate
Mr Tsang opened his address by asking the business community "to walk an extra mile to treasure, nurture and strengthen their own human resources" to help bring down the general unemployment rate.
"In a modern, globalised economy, the success of a firm is defined by the quality of its human resources capable of rejuvenating the firm to meet ever-changing market demands," he said.
He called for business managers to help retrain their employees before their skills turn obsolete or incompatible with shifts in corporate strategy.
"A firm can often avoid laying off its loyal employees, by absorbing them into other operations within the same or a sister organisation after re-training. In the long run, downsizing does not always make economic or business sense," he said.
"In a world where skilled, innovative personnel are in growing demand, downsizing can be devastatingly costly. It also ruptures corporate culture and shatters loyalties that make successful companies durable. Employee layoffs can be prevented, or at least reduced, by progressive and anticipatory staff training programmes."
Keeping staff, hiring, helps boost morale
Low labour costs in the Mainland are giving Hong Kong workers a strong sense of insecurity - lowering their morale and consumption rates, leading to a weak market.
Foreign firms moving to Hong Kong accept higher staff costs because of what Hong Kong offers, Mr Tsang said: A fair and open system, a dynamic and flexible workforce, low and predictable taxation, and higher profits.
"The key to success lies in how you can re-tool and keep the best staff you have and continue to employ more people in the market, who will secure and develop the most profitable market niche for the firm," he added.
"I would also encourage companies with the capabilities to run short-term placement programmes for our young graduates and school leavers in the coming summer and to provide them with a taste of what work in real life means. This not only helps prepare our youngsters for responsible careers later on, but it also provides an opportunity to develop their work ethics."
Measures send strong message to community
These measures, he said, "send a strong message to the community that our companies embrace their social responsibility, and share a strong sense of partnership with the community."
Mr Tsang closed his address with a popular passage from St Francis of Assisi: "Make me an instrument of the peace. Where there is hatred, let me sow love; where there is injury, pardon; where there is doubt, faith; where there is despair, hope; where there is darkness, light; where there is sadness, joy. Grant that I may not so much ask to be consoled as to console; to be understood as to understand, and to be loved as to love."
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