People

Giving back

By Andrew Moody (China Daily)
Updated: 2009-09-30 06:26

This meant Chinese companies that wished to trade with many international companies had to adopt international kite mark standards, such as the SA 8000, set by the international body Social Accountability International.

This resulted in a difficult period for many Chinese companies. Those who embraced the standard suddenly found themselves at a competitive disadvantage compared to those in the domestic market and a number of international markets, who did not.

The government in recent years has been keen to give clear signals that it wants China to take a lead on CSR issues.

In a landmark speech to a major CSR conference in Beijing in 2006, Liao Xiaoqi, former vice-minister in the Ministry of Commerce, signaled he wanted to see corporations play their part in creating a harmonious society.

There is still progress to be made. In its International Survey of Corporate Responsibility Reporting last year, international businesses advisers KPMG found 88 percent of Japanese firms, 84 percent of UK ones and 73 percent of those in the United States produce stand-alone CSR reports. Estimates suggest the equivalent figure in China is between 20 and 30 percent.

Certainly, CSR has become a major issue for foreign firms in China. AmCham-China, which has 1,200 members, spelled out its commitment in a book, Partnering in Progress, in 2006. It also donated more than $100 million in money, goods and services to last year's quake victims.

John Watkins, chairman of AmCham-China, says his members are committed to being good corporate citizens.

"Our members call China home and the chamber is committed to giving back to the Chinese community. We make a positive impact in the community on a regular basis," he says.

Chen, who is a member of the National Committee of the Chinese People's Political Consultative Conference, the country's top political advisory body, believes there is real momentum behind CSR in China now.

"I think the drive is much stronger here now than it is in the United States. We need to build on that and make CSR a top priority for us all," he says.

Additional reporting by Wang Bo