CSR development in China: Evolution of State Role Shuaihua Cheng
Senior Analyst, Shanghai Development Research Center
Visiting Fellow, St Antony’s College, Oxford UniversityBeyond CSR? Business, poverty and social justice
NLC, London 22 May 2006 Please do not quote without permission!
CSR development in China: Evolution of State Role Shuaihua Cheng
Senior Analyst, Shanghai Development Research Center
Visiting Fellow, St Antony’s College, Oxford University
Beyond CSR? Business, poverty and social justice
NLC, London 22 May 2006 Please do not quote without permission!
Today’s agenda
Time line
2000 recognition
2003/4 research
2005- policy Space line
Pearl River Delta
Yangtze River Delta
Beijing/Central Gov
Time 2000, recognition
“new form of trade protectionist measure” (CEC-CEDA)
intergovernmental treaty >>
non-governmental, through supplier chain
Time 2003, research
Mixed view of CSR
“unfair/discriminatory
+ congruent with development objectives and national laws”
(SCDRC)
Time 2005-, policy
National level:
Trade related (in MOC); Labor rights related (MESS); environmental (SEPA)
Local & regional level:
Training, mandating, rewarding…
Space PRD: China 35% Export
2003 CSR Research Center (GDASS)
2005 CSR Bill in GD Congress
2006 GD Authorization to TA self-discipline
2006 ShenZhen Guidance to Promote CSR
35% export---frontier to global value chains
Lose commercial order//lack of workers-worker rights awareness//
Space YRD: China 20% GDP
2004 SDRC research on SA8000 rumors
2004 Pudong Admin Cadres School (SPACS) set up a CSR course
2005 UNGC Shanghai Summit
2006 11th 5year plan, CSR “an integral part of public governance”
Space Beijing/National Level
In past three years
Promoted concept and awareness of CSR
Contributed to establish an enabling environment
Urged local government to enhance supervision of CSR, by rewarding or punishing enterprises according to their CSR performance
Trade related
February 2006, Assistant Minister announced that China is drafting CSR Standard. Improving CSR is listed as a priority work in 2006 of Ministry of Commerce to “transforming trade growth pattern”.
Performance Assessment of SOEs
Improving CSR is one of five key working areas in 2006, according to the National Commission for State Owned Assets. Safety and environmental performance in addition to finance is going to be assessed.
ISO social standard discussion
China’s principle is
“lead by government, handle it properly, forward steadily, and harmonious development”. (bad translation!!)
Avoiding returning of old style Chinese enterprises//too heavy social burden.
Avoid adding huge costs to firms, and thus setting up big hindrance to trade.
State Commission for Standard Administration appointed 6 experts from different stakeholders and joined the ISO discussion from the very beginning. China was
in China has positive impacts. Meanwhile, due to the big population and employment pressure, going too fast might result in many related problems.
Industrial CSR system
May 2005, Chinese Textile Social Responsibility Management System, called CSC9000T (CATI).
It is the first industry CSR standard with a view to strengthening self-discipline among industries.
Conclusive remarks
Public and government recognition
Role of government in strengthening CSR,(endorsing, facilitating, partnering, mandating and demonstrating)
+ cultural and tradition element
Next steps: start at local level. And participate in rule making while taking certain rules.
A fundamental element in China’s social and governance evolution
Congruent with China development strategy as well as MDG.
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