Case Study The HCT Group

HCT Group is an established bus operation with services across the UK, running including ten red London bus routes, Park and Ride services, and NHS staff transport. HCT was launched in the 1980 to provide community transport in Hackney, London. At that time it was just one of many small community transport organizations that provided low-cost minibus transportation for marginalized communities, non profit organizations and social clubs. It also provided transportation for disabled persons who had difficulty using public transportation. HCT relied on grans and donations to support the operation. However, in 1993, HCT like many similar companies found it hard to get grans to support their service. Since the need in the community was just as great, HCT set out to find bold, new ways to meet their financial needs.

This required rethinking how they conducted business and developing a new business model that would not rely on grants but on winning commercial transport contracts. HCT believed that if they could win such contracts, they could reinvest the profits into projects for the community that would have strong social impacts. Part of this model included training the disadvantaged people of the community to take on the roles of drivers, passenger assistants and other jobs that not only provided them with income but allowed them to gain life-changing skills.

HCT develop their own training skills to pass on to their employees and landed their first contract. They went on to become the only accredited center for passenger transportation training in Hackney, training 392 long-term unemployed people who became qualified in 2010-2011. By 2001 HCT had developed their skills as leaders in the transportation business to the point where they could compete for contracts with major transportation companies and won their first red bus route, opening them up to rapid growth.

Partnerships with other organizations opened up new depots and routes. HCT now provides over 12 million passenger trips every year. All profits are reinvested into the communities they service and fund training for long-term unemployed. At HCT it is not shareholders who reap the benefits but the stakeholders.

Analyze:

How do each of these companies address sustainability?

How does the focus on sustainability provide a strategic position for the company, if any?

Analyze why the company engages in social activities.

What form of corporate governance best fits a sustainable company?