China Philanthropy

Does the Chinese Market Respond to Corporate Philanthropy?

In March, China Policy Institute published a study questioning the market reaction to Chinese corporate philanthropy. This topic is an important one as corporate social responsibility (CSR) gains ground in China and the market pays more attention to those companies exhibiting responsible and generous business practices. In the weeks and months following the Sichuan earthquake, the public showed considerable favoritism to companies that donated money and resources to the area. Conversely, many companies that failed to give to the standards of the public were lambasted and experienced a decline in their stock market.

Links That Make You Go Hmmm…for the week ending May 28

Art for Charity in China Isn’t New: Art that fundraises for and/or supports charity has seen a rise recently, but China Daily says artists of the 19^th century also used their art for good.

Urban Competitiveness and CSR: This year’s Blue Book on Chinese Urban Competitiveness published by the Chinese Academy of Social Sciences focuses on 24 major cities in China and has a new focus on CSR, which reflects China’s “green GDP” initiative for companies. For more info on CSR in China, check out our recent post on CSR and the Hang Seng Index.

Cognitive Bias and Philanthropy: The Philantopic blog has a somewhat tongue-in-cheek look at cognitive biases that affect our view of philanthropy.

2009 Whole Year Report on Charitable Donations in China

中文

Recently, the China Charity and Donation Information Center released the 2009 Whole Year Report on Charitable Donations in China (in Chinese). The report provided a large-scale look at Chinese philanthropy including the total size of donations that came into the country, the percentage of overseas donations, the donations given to different charitable sectors, and the types of donors. As a follow-up to my previous post covering the charitable giving in the first half of 2009, I here summarize some important findings of the yearly report.

Links That Make You Go Hmmm…for the week ending May 21

Two Years After the Sichuan Earthquake: May 12 marked the second anniversary of the earthquake that hit Wenchuan County, Sichuan. Several news sources have looked at the progress that has been made since then.

An Overview: Sichuan Quake Relief interviewed local people and provides a comprehensive update of the positives and negatives of the situation on the ground. A good reminder that Sichuan still needs our help.

Sichuan Kids Photograph Their Lives: The Red Cross gave students in earthquake areas disposable cameras to photograph their lives and to provide them with a creative outlet. Children also got the opportunity to share some of what they’ve learned to children in Haiti.

Registering the Missing: 18,000 people still remain missing even two years after the quake; however, this anniversary marks the first time that families have been allowed to register them as such.

Seeing the Real China: A New Company Combines Tourism and Philanthropy

In 2008, Chinese-born and U.S. educated Victor Zhao left a prominent position at McKinsey & Company’s Shanghai office to start RealChina, China’s first responsible tourism company.  RealChina’s crew of expert travel guides give customers an insiders view to some of the country’s most majestic locales and then gives them the opportunity to make a difference in the lives of the local people through service oriented projects. Additionally, 10% of all RealChina’s travel profits go to the local areas visited. We spoke with Mr. Zhao to learn more about how he hopes to change the tourism industry in China.

Links That Make You Go Hmmm…for the week ending May 14

The Problem of Rural Pollution: CSR Asia reports on a significant and growing problem of pollution in rural China. Since the focus of pollution tends to be on cities, rural areas often slip under the radar. According to an official from the Ministry of Environmental Protection waste released into rural waterways accounts for 48% of the total waste.

Reconstructing Yushu: The government estimates that reconstruction of Yushu, the region in Qinghai province hit by a 6.9 earthquake on April 14, will take three years.

The Rebirth of Shiumo Town: Two years after the devastation of the Sichuan earthquake, photos depict the heavily damaged Shuimo Town being recreated as a charming cultural spot featuring buildings in the ethnic Jiang style.

Attacking China’s Blindside: A wealthy overseas Chinese family takes advantage of international interest surrounding the Shanghai Expo to raise awareness of China’s 12 million blind citizens. Celebrities and luxury brands were lined up to raise money for cataract surgeries at an auction and dinner on May 9.

Evidence-Based Grant Making & The Medical Diagnoses: Bet you didn’t know there was a connection. Sean Stannard-Stockton of Tactical Philanthropy discusses the rise in evidence-based grant making by comparing it to the fairly recent practice of evidence-based medicine.

CSR Survey of Hang Seng Index Constituent Companies 2009

Corporate Social Responsibility (CSR) is increasingly being recognized as an integral part of doing business in Asia. As companies realize the benefits of CSR, they are beginning to take seriously issues such as employee welfare, community involvement, and environmental sustainability. According to Business Barometer, a survey conducted by CSR Asia, companies in Hong Kong rank highest in the region for their CSR practices. In order to analyze how these companies are performing, Oxfam Hong Kong recently released its second Corporate Social Responsibility Survey of Hang Seng Index (HSI) Constituent Companies.

The report provides a detailed assessment of CSR activities in Hong Kong’s largest and best performing companies and seeks to facilitate a comprehensive dialogue on corporate responsibility. The forty-two companies listed in the Hang Seng Index collectively have an enormous impact on the Hong Kong economy and as a result also wield significant influence on social and environmental issues. Yet the survey also has broader implications beyond Hong Kong, as 16 of the HSI listed companies are headquartered in mainland China.

Some of the highlights of the report’s findings are summarized below:

Has Philanthropy "Come of Age" In China?

The 2010 Hurun Philanthropy List recently announced a breakthrough in China’s philanthropic scene. For the first time, a Chinese philanthropist has broken the billion dollar barrier by donating the rest of his USD 470 million of cash and property assets to charity. This is Yu Pengnian’s fifth consecutive year as China’s top philanthropist with the value of his accumulated donations now standing at USD 1.2 billion. The generous act marks a new trend to watch, as “China’s top wealth creators are now making significant donations,” said Hurun Report founder Rupert Hoogewerf.

Yet as the potential for charitable giving among China’s multimillionaires continues to grow, the question arises of whether a more widespread culture of philanthropy will develop among the population. Interestingly, the rapid growth of millionaires has generally taken place among a younger generation. Today, the average age of a wealthy Chinese person is 39 years old, around 15 years younger than their counterparts abroad. Thus, while 88 year-old Yu Pengnian’s large donation marks a major step in China, whether or not charitable giving will increase in the long run will depend on how the younger generation views philanthropy. 

SVG's Spring Newsletter

In the Spring edition of Social Venture Group's newsletter "Doing Good: Nonprofits in China." We aim to give you an "on-the-ground" perspective of some of the happenings here in the grassroots nonprofit sector in China.

• News from the Yushu Earthquake
• Ancient Embroidery Hits the Runway and Rescues a Culture
• In the Kitchen with China's Mentally Disabled
• Bringing Music and Sports to Beijing's Migrant Children
• SVG's Newest Event--Raising Awareness for Local Charities

Click here to read.