CSR, Corporate Social Responsibility, has been a huge focus in the business world in China, especially after Sichuan’s earthquake last year. A recent article on Asian Philanthropy Forum points out that “the definition of ‘CSR’ is very western concept closely related with the longterm strategic planning of a company while CSR in China is tend to be a short-term action originated from philanthropy.” As a key element in corporate management and development, CSR has been widely accepted in the west and is acknowledged among most multi-national companies after more than 50 years of history. However, it is still a relatively new concept for most Chinese companies.
The Sichuan earthquake was regarded as a milestone in the course of China’s charity. On one hand, there have been an unprecedented amount of donations from Chinese enterprises which shows their increasing social awareness. On the other hand, some of those same companies were also involved in the tainted milk-powder scandals, such as Mengniu and Yili, China’s top leading manufacturers of dairy products. There is a clear disconnect between the love and care these companies showed to the earthquake-stricken people of Sichuan and basic day-to-day ethical business practices. This may, to some degree, speak of the current situation of CSR in China. CSR in China is more like a one-time charity event, and does not necessarily reflect the actual business model of a company.
There are Chinese companies implementing CSR effectively, however. Alibaba, a Hangzhou-based e-commerce company and the world’s largest online B2B online marketplace, is a very good example. Alibaba donated RMB2.5 million (US$365,000) to Sichuan province immediately after the earthquake. After several rounds of discussion among Alibaba’s senior management, the company decided to establish a long-term fund to support the post-earthquake reconstruction. They also set up the “Alibaba Workshop” led by CEO Jack Ma to focus on its employees’ volunteerism along with other programs addressing the needs during reconstruction.
There might be many external reasons for the current situation of CSR in China, such as inexperience, lack of accountability and trust, and legal restrictions, etc. However, companies cannot wait for changes in the macro environment to act. They need to start developing and implementing CSR strategies into the framework for their businesses now.
For some Chinese companies, CSR is irrelevant to the overall strategic planning and therefore no sustainable solutions are implemented. In reality, CSR must be seen as an investment rather than a cost. It is closely tied with the long term development of a company. Many Chinese enterprises still need to develop a holistic concept of CSR which includes developing relationships with stake holders, suppliers, customers, employees’ benefits and the community. In order to understand this concept, however, Chinese companies need help. There are several ways to address this issue and help Chinese companies develop a more mature understanding of CSR.
- Provide
more diversified non-profit projects so that companies have options. The
earthquake showed that most Chinese citizens are willing to help and
give. What if there were more opportunities readily available? Bring
those projects and organizations with special needs to the general public.
Let them know there are people in this society that need their help and
that it is their responsibility to lend a helping hand.
- Organize
professional training programs or consulting especially designed for
corporations-- professional consulting firms that can create CSR plans
aligned to the competitive considerations of the company.
- Government stimulation plans. At present, there are only seven charitable organizations in China that can issue certifications of donation for corporate tax exemption. Increasing the number of these charitable organizations, and even including grassroots NGOs would significantly contribute to the social and environmental needs of China.
--Nora
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