CSR in China examples from GIZ


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An overview of CSR initiatives in China and examples of the work of GIZ serving interested stakeholders there.

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CSR in China examples from GIZ

  1. 1. Corporate Social Responsibility in China 10/09/11 Seite
  2. 2. New Paradigm for Doing Business in a Globalized World• Higher expectations from stakeholders and the general public• Corporate transparency, accountability and stakeholder relationships are the new frontier for competitive innovation• Stakeholders more aware of critical topics such as corporate ethics and climate change• More processes outsourced than ever before• Production located in different centers at a global scale• Hyper-connected world / Speed of communications• Need for horizontal and decentralised structures = fast response time and better service 10/09/11 Seite
  3. 3. Defining CSRSocial ResponsibilityResponsibility of an organization for the impacts of itsdecisions and activities on society and theenvironment , through transparent and ethical behaviour that⎯ contributes to sustainable development, including health and the welfare of society;⎯ takes into account the expectations of stakeholders;⎯ is in compliance with applicable law and consistent with international norms of behaviour; and⎯ is integrated throughout the organization and practised in its relationshipsSource: ISO 26000 Guidance on Social Responsibility 10/09/11 Seite
  4. 4. Rationale for CSR in Emerging Economies1. Emerging economies represent the most rapidly expanding economies, and hence the most lucrative growth markets for business2. Emerging economies are where globalization, economic growth, investment, and business activity are likely to have the most dramatic social and environmental impacts (both positive and negative)3. Emerging economies present a distinctive set of CSR agenda challenges which are different to those faced in the developed world. 10/09/11 Seite
  5. 5. Chinese Central Government Position on CSR Premier Wen Jiabao:* “Enterprises should carry out the policy of the country, take care of society and assume their respective social responsibilities. The entrepreneurs should not only focus on business and management, they should have the blood of ethics flowing in their body.” * 2009, Cambridge University, U.K. 10/09/11 Seite
  6. 6. CSR – A Response to the Challenges of China Social Environmental Challenges Challenges Work safety  Dramatic increase of demand for natural Public and resources occupational health Climate changeLabour rights and Building amigration issues Harmonious  Industrial and Society household discharge Product and food safety  Environmental degradation and Urban-rural divide pollution Income disparity  Increasing resource consumption and depletion 10/09/11 Seite
  7. 7. GIZ’s Sino-German Corporate Social Responsibility Project Objective:  Support key political institutions, intermediary organisations, and enterprises to incorporate CSR into their strategies, policies, and practices Duration:  2007 - 2012 Key Government Partner:  Department of WTO Affairs, Ministry of Commerce of the PRC Focus on:  Central and local governments (Macro)  Intermediaries (Meso)  Individual enterprises (Micro)  International exchange 10/09/11 Seite
  8. 8. German International Cooperation (GIZ) International cooperation enterprise for sustainable development Operations in more than 130 countries in Europe, Asia, Africa, and Latin America 17.000 people are employed worldwide, more than 60% are local personnel A federally-owned not-for-profit organisation Estimated turnover of EUR 1.9 billion 10/09/11 Seite
  9. 9. CSR Development and Trends in China CSR TRENDS IN CHINA Public discussions on General concern: CSR is a CSR seen as an CSR are practically trade barrier. opportunity. non-existent. “Wait-and-See Years” (until 2000) (2000-2004) (2005 → )  Multinational  Academics, international  Chinese organizations corporations begin organizations and NGOs proactive (CSC9000T, auditing of Chinese explore CSR. Shenzhen stock suppliers. exchange, etc).  The Ministry of Labor,  Little exposure to CSR Ministry of Commerce,  CSR linked with (Government, media and others created CSR Harmonious Society in and domestic Chinese investigation committees. 11th Five Year Plan. enterprises).  Chinese MNCs and SOEs becoming early adopters. 10/09/11 Seite
  10. 10. Recent CSR Trends in China Government - promotion and support of CSR (SASAC and Shanghai) Shanghai and Shenzhen Stock Markets - CSR guidelines Industry associations - encourage members to implement CSR measures Increasing media attention Rising NGO awareness and supervision Developing consumer awareness Changing employee demands Increasing influence of MNCs on CSR aspects Rising interest in sustainable investment Growing number of CSR reports 10/09/11 Seite 1
  11. 11. CSR Driver 1: Consumer Pressure Public pressure from consumers, NGOs, and government initiatives in western countries leads to Increased awareness in companies for responsible and sustainable processes of production leads to Pressure on supply chain to comply with sustainability standards and company specific Codes of Conduct results in Improvements in companies along the supply chain 10/09/11 Seite 1
  12. 12. CSR Driver 2: Government Support Examples  The Chinese Ministry of Commerce takes aspects of CSR into consideration when assigning export licences  Cooperation with consumer countries using the framework of development cooperation  e.g. with Germany, Sweden and Switzerland  Local governments, associations and institutions support companies in implementing CSR 10/09/11 Seite 1
  13. 13. CSR Driver 3: Local Strikes – A New Development  Trade-relevant: Export-oriented companies were affected  Media attention: Strikes were covered by Chinese media  Peaceful settlement: Blockades and strikes were eventually resolved by meeting worker’s core demands  Unexpected: Strikes, along with community protests and actions, have been discouraged ever before 10/09/11 Seite 1
  14. 14. CSR Policy Advise Policy recommendations to the State-owned Assets Supervision and Administration Commission (SASAC), Ministry of Human Resources and Social Security, Ministry of Commerce, e.g. creation of an Inter-Ministerial CSR Coordination Mechanism, promotion of ISO 26000 Policy recommendations on CSR promotion and incentive policies to local governments, e.g. Zhejiang Province, Wenzhou, Taizhou Research and Trainings on “Local Governments’ CSR Policies in China” 10/09/11 Seite 1
  15. 15. Introducing CSR to IntermediariesDevelopment of CSR action plans for Chinese industry associations andchambers of commerce, e.g. China Chamber of Commerce for Import andExport of Machinery and Electronic ProductsTranslation and dissemination of ISEAL Codes of Good Practice, e.g.Standard-Setting CodeSupport of internet-based platforms operated by service providers, e.g.China WTO Tribune, focusing on CSR 10/09/11 Seite 1
  16. 16. Global Initiatives with the Chinese Market Taking Chinese central government delegations to Europe, e.g. with focus on carbon reduction policies Organising Sino-European roundtables and conferences on CSR in China and Europe (with BSCI) Presenting CSR Best Practices at the 2010 World Expo in Shanghai Training on CSR Reporting (with GRI) Initiating international conferences on CSR issues and events on sustainability Contributing to CSR Asian forums and conferences 10/09/11 Seite 1
  17. 17. Upscaling of Voluntary Social Standards Initiative funded from July 2009 to September 2011 AA1000 by German Ministry of Economic Cooperation and BSCI Development CSC9000T Support the harmonization and alignment between GRI national and international standard initiatives GSCP ISEAL Strengthen a transparent and efficient market for SA8000 standard-related service providers ISO 26000 Support transfer and scaling up of social standards Global Compact ICTI 10/09/11 Seite 1
  18. 18. Development of CSR ReportingNumber of CSR Reports Published in China 2005-2010 750 663Number of Reports Published 631 563 375 Increase in number of 188 169 published reports: 98  2005 – 13 Reports 13 32 0  2007 – 98 Reports 2005 2006 2007 2008 2009 2010  2010 – 692 Reports Source: WTO Tribune Research on CSR Reporting 2010 10/09/11 Seite 1
  19. 19. Cooperation in Supply Chain Management PPP Type Private Partner Region CSR Project 8 local companies Hebei PPP 8 local companies Zhejiang adidas Guangdong German PPP Tchibo Yangtze/Pearl River Delta Facility Wessling / D&H Jiangsu/Zhejiang Int. Council Toy Ind. All China 10/09/11 Seite 1
  20. 20. Improving Recruitment of Workers with adidasCapacity Building for Migrant WorkersObjective To ensure a just and fair recruitment as well as better treatment of migrant workers in supplier factoriesMeasures Building up strategic relationships between factories and training centres to improve recruitment practices and develop training programs Building capacity at both the source of migration and its destination Preparation of migrant workers for factory work and urban lifeResults Capacity of 356 villagers was built up Migrant workers became better prepared for factory work Two suppliers of adidas recruited 23 high-quality staff 10/09/11 Seite 2
  21. 21. Improving Labour Conditions in Toy ProductionObjective Improving access to information, training and support related to compliance with health, safety and labour standards for toy factory workers in ChinaMeasures Development of training materials Trainings for toy factory workers On-site visits and consultancy servicesResults Eight toy factories and five NGO partners participated in the project Two-day training conducted for 16 managers and 17 workers In-factory training to be conducted by end of March 2011 for additional workers 131 sets of DVD training materials were developed and distributed to stakeholders Worker helpline service launched, 1,437 calls and instant messages received 595,000 “What You Should Know” pocket cards distributed in 1,186 factories 10/09/11 Seite 2
  22. 22. Summary of CSR Experience with CompaniesCapacity building and advisory services to individual Chinese and internationalcompanies on specific areas such as:  Environmental Management, e.g. Environment-oriented Cost Management  Hazardous Waste and Toxic Substances Management  Energy Efficiency  Improvement of Working Conditions and Social Standards in Enterprises  Introduction of Dialogue Systems between Migrant Workers and Management  CSR-related Communications, e.g. CSR Reporting  Implementation of Effective Monitoring and Evaluation Systems 10/09/11 Seite 2
  23. 23. Thank you for your attention! Contact: Rolf Dietmar Project DirectorSino-German Corporate Social Responsibility Project +86 10 8419 5686 rolf.dietmar@giz.de www.chinacsrproject.org 10/09/11 Seite 2