CSR development in China: Evolution of State Role

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CSR development in ChinaEvolution of State Role
Beyond CSR? Business, poverty and social
justice NLC, London 22 May 2006

• Shuaihua Cheng
• Senior Analyst, Shanghai Development Research
  Center
• Visiting Fellow, St Antonys College, Oxford
  University

Please do not quote without permission!
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Todays agenda

• Time line
• 2000 recognition
• 2003/4 research
• 2005- policy

• Space line
• Pearl River Delta
• Yangtze River Delta
• Beijing/Central Gov

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Time 2000, recognition

• new form of trade protectionist measure
  (CEC-CEDA)
• intergovernmental treaty gtgt
• non-governmental, through supplier chain

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Time 2003, research

• Mixed view of CSR
• unfair/discriminatory
• congruent with development objectives and
  national laws
• 
  (SCDRC)

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Time 2005-, policy

• National level
• Trade related (in MOC) Labor rights related
  (MESS) environmental (SEPA)
• Local regional level
• Training, mandating, rewarding

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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

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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

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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

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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.

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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.

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ISO social standard discussion

• Chinas 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.

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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.

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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.

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