The Relationship Between Corporate Social Responsibility and Financial Performance

Case Studies: The Relationship between Corporate Social Responsibility, Corporate Governance and Financial Performance

Content

Introduction

CLP Holdings, through its wholly owned subsidiary Hong Kong Nuclear Investment Company Limited, owns 25 percent of Guangdong Nuclear Power Joint Venture Co., Ltd., which operates Daya Bay Nuclear Power Plant Units 1& 2.

In FY 2008, the company received confirmation that its Guangdong Daya Bay Nuclear Power Station’s operating license would be extended another 20 years past its original expiration date (2014).

Established as China Light and Power in 1901, CLP is one of the oldest electric utilities in the world. The company owns the largest electric power utility in Hong Kong and has investments in mainland China and other areas of Asia-Pacific. With a market capitalization of about US$9.5 billion, it is one of the most actively traded stocks on the Hong Kong Stock Exchange.

CLP, established as China Light and Power in 1901, has developed a strong culture of corporate governance, which it attributes to a strong and engaged board of directors who reflect the interests of shareholders and major stakeholder groups.

As early as August 2000 CLP published a booklet stating its philosophy on corporate governance. The company has continued to set the pace, establishing a corporate governance section on its website and establishing a nomination committee to ensure transparency in the selection of new directors. The initiatives have won the company accolades and awards from the Hong Kong Society of Accountants, the Hong Kong Management Association, the Hong Kong Institute of Directors, and various regional financial periodicals.

CLP Holdings Limited (CLP Holdings) through its subsidiaries is engaged in the generation, transmission and distribution of electricity in Hong Kong, Australia, and India. The company also invests, develops, operates and manages power projects in the Chinese mainland, Southeast Asia and...