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CorporateSocialResponsibilityPresentation by
Tristn Alberto Vaca Narvaja
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The concept of CSR The company should not only aim at making the
maximum profits for its shareholders, but also considersocial welfare.
Areas
Product safety
Environmental protection Labor rights
Human rights
Community development
Corruption
Not only attend the interests of shareholders, but alsothose of other stakeholders. (Employees, consumers,suppliers, and local communities)
Global Supply Chains.
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Increasing Importance of CSRIn China
Companies makes profit in a social context
They provide services and products to fulfill the
needs of the society Green Economy. (Building a harmonious society, is
the long-term goal of the Chinese socialism)
The reduction of pollution emissions has beenintroduce since the 10thfiveyear plan.
Recent growth of public and private initiatives.
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CSR initiatives in China
Company Law (Art. 5)
General principles of Corporate Social Responsibility
Corporate Social and Environmental Disclosure
Socially Responsible Investing and Environmentally Responsible
Financing
Public initiatives
CSR Standards and Guidelines
CSR Organizations, Forums and Awards
Private Initiatives
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Company Law - Art. 5 Article5: When undertaking business operations,
a company shall comply with the laws and
administrative regulations, social morality andbusiness morality. It shall act in good faith, acceptthe supervision of the government and thegeneral public, and bear social responsibilities
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General Principles of Corporate
Social Responsibility (2008) State-owned Assets Supervision an Administration Commissionof the State Council (SASAC) released it. It expects the SOEs to
become leading examples for all Chinese companies.
Reasons Promoting social Harmony
SOEs are the backbone ofChinas economy, security,
affecting every aspect ofChinese peoples living
Sustainable development
ContentsComplying with the law and business
conduct
Increasing profitably
product and service qualityEnvironmental protection
Innovation and technology
Production Safety
Employees rights
Actively engaging in charity.
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Socially Responsible Investing and
Environmentally ResponsibleFinancing
CSR
CorporateFinancial
Performance
Green credit policy
Use of financial channels to improvecorporate environmental performance
Green securities
Environmental performance reviewswhen applying for initial public offeringor refinancing
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China Coal EnergyCorporation - 2008
Failure to:
strictly implementenvironmental impactevaluations
Phase out outdated facilities Install environmental
protection facilities requiredby law
Emissions exceeding thepermitted level
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CSR initiatives in China
Company Law (Art. 5)
General principles of Corporate Social Responsibility
Corporate Social and Environmental Disclosure
Socially Responsible Investing and Environmentally Responsible
Financing
Public initiatives
CSR Standards and Guidelines
CSR Organizations, Forums and Awards
Private Initiatives
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CSR Standards and Guidelines
HOWEVER,it is more about long-term goals ratherthan immediately required standards. The evaluation process is controlled by the Responsible
Supply Chain Association, whose members are thesame companies subject to the evaluation process.
CSC9000T (imitating ISO14000, the internationally-recognized environmental management tool)
Provides objectives in the areas of management system,emplyment contract, child workers, forced orcompulsory labor, working hours, wages and welfare,
trade unions, occupational health and safety
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Is CSR an alien concept to theChinese culture?
Ideology of Orthodox Confucianism
Hostile to profit-
making businessBusiness org. using akingship cloak
Social responsibilitieswith the family andthe communities
Buddhism and Daoismcombined with theConfucianisminduced a culture ofdiligence, honestyand charity amongbusinessmen.
1731: Qing Dynasty edict
the ideal way for awealthy household toperpetuate itself ()is dispensing relief
and aid to the poor
SOEs
Before the economicreform, a SOE was
not only a productionunit but also a socialservice center.
Its not the same
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Pros Cons
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Pros Cons
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Pros Cons
Social andenvironmental standardsin global supply chains
Increase of costs of
production
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Pros Cons
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Pros Cons
Increase of costs of
production
Internal consumer isimmature
Social andenvironmental standardsin global supply chains
US and Europeanconsumers care
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Pros Cons
Increase of costs of
production
Internal consumer isimmature
Social andenvironmental standardsin global supply chains
US and Europeanconsumers care
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Pros Cons
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Sanlu Milk Powder(2008) Biggest milk powder
manufacturer in china
A batch of formula producedwas tainted with melamine,
the chemical that wasinvolved in a pet food recalllast year when thousands ofanimals in the US were taken illor died.
Melamine, which is used inplastics, fertilizers and
cleaning products, should notbe used in food, but adding itmakes food appear higher inprotein when tested.
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Pros Cons
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Pros Cons
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Conclusions
CSR is not window dressing, buta requirement for corporatelong-term development.
As stakeholdersboth in Chinaand around the worldcontinue to place an increasingemphasis on responsiblecorporate citizenship,companies in China are likely tomaintain and expand their CSRefforts for the foreseeable future.
Indeed, companies are alreadygoing beyond legal.
Sustainable economy is not achoice.
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Conclusions
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