ABSTRACT
The conditions under which construction projects are undertaken are conducive to disputes and hostilities from stakeholders. The challenge for the project team becomes one of implementing project strategies such that positive stakeholder’s influence is maximized and negative influence is minimized (Walker et al., 2008). Nowhere perhaps is this phenomenon more obvious than in Hong Kong where the populace have, over the past decade, found their voices following the return of the colony to China in 1997 after 150 years of British rule and growing agitation for a more democratic society. The historical context is therefore important in understanding the current situation regarding stakeholder management and relationship management in Hong Kong. During the colonial years, a British approach to construction was followed, focusing strongly on the traditional approach which was regulated and administered by a strong civil service. This led to a construction industry which relied heavily on hierarchy, tradition and procedures in order to function effectively, but the industry was also heavily influenced by the Chinese culture in which it was situated. Hence, values such as face, harmony and conflict avoidance were also embedded in the industry culture. In such a situation, the issue of stakeholders and their management was paid scant regard; the government was used to making decisions on development rather than consulting widely and the other major players – the oligarchy of large real estate developers – adopted a simple, economic approach to their business plans. Only over the past few years have issues such as corporate social responsibility reached boardrooms. Matters are, however, changing and Hong Kong people have become much more challenging of their government and institutions and have demanded that they be consulted and involved in all developments (e.g. the West Kowloon Cultural Hub, the Tamar Site redevelopment and the demolition of the Star Ferry and Queen’s Piers). In response to this wave of change, major client and construction organizations are embracing corporate social responsibility as a business
strategy which in many ways is seen as a driver of stakeholder engagement and management. ‘Respect for people’ is becoming a core theme in construction organizations. Against this background the issue of relationship management has become prominent in stakeholder management discourse. To place the development of stakeholder management in Hong Kong in context, we examine how relationship management can shape stakeholder management and present two cases, as part of our ongoing research, to exemplify such an approach.
