Chinese Federation for Corporate Social Responsibility
February 20, 2008
The concept of corporate social responsibility (“CSR”) seems to be gaining quite a bit of popularity lately in China.
An article in The Economist calls China “the new frontier for the CSR industry.” The article identifies three areas from which pressure is coming. First, the federal government in China is pressuring companies to become more environmentally responsible. Most would think it has more to do with outside pressure than with the government looking out for the welfare of its citizens. Second, foreign investors “want to apply their ethical standards across their supply chain,” and are doing so by implementing some of the myriad of global standards from ISO to SAI. Third, as Chinese companies go global, they find that potential customers, especially in the developed world, like to choose products made responsibly by principled corporations.
We see something other than pressure from the outside world pushing China to implement the concept of CSR. The Eastern idea of “merchant spirit” from Confucius thought is deeply rooted in Chinese companies and exemplified by corporate efforts to pursue excellence and give back to society. As China emerges on the world stage and increasingly integrates into the international business culture, there exists a strong desire within China’s private sector to demonstrate a genuine commitment to social responsibility. More and more Chinese companies understand while the duty of an enterprise is to make a profit, there exists a responsibility for this profit to be attained in a just and moral way. Only in this way will enterprises in China achieve reputations worthy of respected by the general public.
The Chinese Federation for Corporate Social Responsibility (CFCSR) was formally founded in October of 2006 to provide a support base for forward looking enterprises. By organizing their respective CSR programs into one not-for-profit membership organization, the twelve founding corporations are committed not only to improving their own internal practices, but also to promoting improved CSR practices throughout China’s private sector. In just a few months, the CFCSR membership base has grown to 25 corporations and supporting media organizations.
Professor He Zhiyi, Secretary General of CFCSR, Director of Management Case Center of Peking University, and famous economist in China, said “in modern China, whether talking about corporations or individuals, what’s missing is not compassion or care for our fellow citizens, but rather an awakening or movement towards a more conscious understanding of our responsibility to society.” CFCSR will create a platform for Chinese corporations to join hands to do something good for the society and make efforts to promote the construction of CSR in China by the promotion of government agencies, supervision of non-government organizations and the self-discipline of corporate entities.
Professor He Zhiyi is a member of the Academy of Excellence and is working with the USA China Law Group to establish visiting scholar programs and seminars focused on CSR.
