CSR IN CHINESE SMALL AND MEDIUM SIZED COMPANIES

Corporate Social Responsibility in Chinese Small and Medium Sized Companies

Table of Contents

Chapter 1: Introduction4

Definition of CSR6

Other perspectives on CSR9

Chapter 2: Literature Review12

CSR in China14

CSR Challenges in Hong Kong, China22

Chinese Taipei22

CSR Challenges in Chinese Taipei23

Globalization and CSR24

Why should companies chase CSR?26

How should companies handle CSR excursions in this globalized climate?33

The effect of globalization on corporate governance reforms36

Innovative CSR Initiatives41

An Association of Foreign Enterprises45

Partnership with Local Selected Non-government Organizations47

Institutional Incentives for Managing Corporate Social Responsibility as an Innovation in China49

Positive Political Opportunities51

The Influence of SA8000 in China and its Limitations52

Chapter 3: Methodology54

Research method54

The Research Philosophy54

Study selection procedure64

Data extraction65

The Research Strategies66

Libraries including online databases were accessed to get the most relevant and updated literature. Some of the online databases that were used are: EBSCO, Emerald, Blackwell, etc.66

Bibliographic management66

Dissertation timetable66

Cost68

Chapter 4: Results & Discussion69

China's most recognized companies72

Stakeholder engagement74

Dialogue Toward Universal Standards78

Chapter 5: Conclusion86

Facing the Problems88

Limitations of this Research89

Reference91

Chapter 1: Introduction

In China, corporate social responsibility (CSR) has been initiated by the government with the purpose of creating a “harmonious” society. In 2008, the earthquake in Sichun and the tainted milk formula events intensified the discussion about the accountability of the firms to the local citizens. During September 2008, the Ministry of Commerce issued a draft document titled “Guidelines on Corporate Social Responsibility Compliance for Foreign Invested Enterprises.” The Guidelines state that “Corporate social responsibility (CSR) requires companies to assume economic, social and environmental responsibilities.”

The Guidelines expect foreign invested enterprises to live up to their CSR obligations—1. “abide by laws, regulations and business ethics to meet operational needs.” 2. “actively balance the interests of relevant stakeholders while enhancing competitiveness and pursuing organic and sustainable growth.” 3. “voluntarily practice acts that bear less relevance to its business growth but are in the interest of social progress, economic growth and environmental protection.” The Chinese government is very interested in establishing competitive business environments, promoting social cohesion, and fostering collective responsibility for the betterment of society, foreign corporations are pushed to engage in more social and environmental changes through CSR (A White Paper from the Business Roundtable, 2000; Murdoch and Gould, 2004; World Business Council for Sustainable Development, 2005; China Economic Company, 2006; van Rooij, 2006; Welford, 2006; China Entrepreneurs Survey System, 2007; Aguilera, Rupp, Williams, and Ganapathi, 2007; Financial Times, 2008). Are foreign SMEs in China be engaged in social changes through their CSR programs in China? How can foreign SMEs be engaged in social changes in China?

Lam (2007) found that nine foreign SMEs in China focused primarily on economic responsibility to the society and legal compliance. These foreign SMEs were not ready to be engaged in social change through their CSR programs in China. The objectives of the paper are to describe a few innovative CSR initiatives and explore institutional incentives for foreign SMEs to solve social and environmental issues through their CSR programs in China. It builds upon the author's ongoing studies with Chinese expatriates concerning the United States and China business negotiations (Lam, 2000; 2003; 2004; 2005) ...