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CSR development in China: Evolution of State Role

Beyond CSR? Business, poverty and social justice NLC, London 22 May 2006. CSR development in China: Evolution of State Role. Shuaihua Cheng Senior Analyst, Shanghai Development Research Center Visiting Fellow, St Antony ’ s College, Oxford University. Please do not quote without permission!.

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CSR development in China: Evolution of State Role

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  1. Beyond CSR? Business, poverty and social justice NLC, London 22 May 2006 CSR development in China:Evolution of State Role Shuaihua Cheng Senior Analyst, Shanghai Development Research Center Visiting Fellow, St Antony’s College, Oxford University Please do not quote without permission!

  2. Time line 2000 recognition 2003/4 research 2005- policy Space line Pearl River Delta Yangtze River Delta Beijing/Central Gov Today’s agenda

  3. Time 2000, recognition • “new form of trade protectionist measure” (CEC-CEDA) intergovernmental treaty >> non-governmental, through supplier chain

  4. Time 2003, research • Mixed view of CSR “unfair/discriminatory + congruent with development objectives and national laws” (SCDRC)

  5. Time 2005-, policy • National level: Trade related (in MOC); Labor rights related (MESS); environmental (SEPA) • Local & regional level: Training, mandating, rewarding…

  6. 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

  7. 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”

  8. 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

  9. 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”.

  10. 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.

  11. 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.

  12. 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.

  13. 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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