Corporate responsibility in China
The concept of CSR (qiye shehui zeren) has been gaining increasing attention in China. Contrary to popular definitions in the US and Europe that highlight the voluntary nature of CSR, most debates in China still focus on issues of (legal) compliance on the one hand and corporate philanthropy on the other. As a result national and international stakeholders do not yet share a common understanding of CSR. In line with the country's size and its growing weight in the global economy, the range of CSR related topics in China is very broad. This key issue page presents the most prominent themes of current CSR debates with regards to China.
-
Comparing CSR practices of domestic and international companies in China
-
- F. Moleres / Panos Pictures
-
Based on publicly available data collected at the end of last year, the Environment-oriented Enterprise Consultancy Zhejiang reviewed the CSR practices of 30 Chinese and 30 foreign multinationals operating in China. According to the study, foreign multinationals are both more actively engaged in CSR activities in China than their Chinese counterparts and more effective at communicating their respective CSR activities. Chinese companies which do communicate their engagement on various CSR-relevant issues tend to focus particularly on community investment and philanthropy.
Labour rights and human rights
China's economic reforms which started 1978/79 have led to impressive economic growth and prosperity especially in Southern China and the coastal provinces. This transition from a planned economy to a 'socialist market economy' has nevertheless left many Chinese workers including millions of migrant workers more vulnerable and unprotected than before. Labour rights' activists have been addressing problems with labour conditions in Mainland China since the mid 1980s. When CSR emerged in China roughly a decade later it was primarily seen as a labour rights/human rights issue. At a policy level, several Western governments have consequently integrated aspects of CSR into their bilateral human rights dialogs.
More...
Supply chain management and international trade
The establishment of so called special economic zones to attract foreign direct investment (FDI) was a decisive step in opening up China's economy. In particular multinational companies have readily outsourced large parts of their manufacturing operations to Chinese factories. According to the Chinese Ministry of Commerce in 2006 the country attracted 63 billion USD in FDI making it by far the largest recipient in the developing world and placing it among the world's top trading nations. This development has naturally had its impact on the evolution of CSR in China and led to a focus on exports, regional and local initiatives, and specific industries namely textiles, toys, and electronics.
More...
Environment
The resource intensity of China's growth has resulted in enormous environmental problems. The central government has consequently designated environmental protection as a priority in its latest Five-Year-Plan (2006-2010). Nevertheless according to joint research by the World Bank and China's State Environmental Protection Administration (SEPA) the 'hidden costs' of China's economic growth amount to a staggering 100 billion USD a year or 5.8% of China's gross domestic product. Industrial pollution is one of the key area for improvements and more and more companies and especially multinationals have become the target of public criticism.
More...
More on CSR in China: the complete listings from Eldis
