Getting started with aof ethics in business and financial planning
Shanghai 24 Oct 2012 Presentation Me Harmsen (1)
1. Progress of the Government Policies
in China and the
influence of academics
Or how the Chinese Culture could
make a positive influence for a more
sustainable China
2. Progress of the Government Policies in China and the
influence of academics.
Overview
1. The status of CSR in China and the role of the Chinese Government (12th 5 yr plan)
2. In-depth A: Challenges for Westerners in the Chinese Culture
3. In-depth B: Western problem solving vs. Chinese Balance thinking
4. Chinese Characteristics in CSR- Where does CSR have effect in China?
5. How does CSR implementation work in China, the role of Educational institutions
6. Trends and solutions for Businesses and Academics , Macro- Meso Level
7. Trends and Solutions for Businesses Micro level
3. 1. The status of CSR in China and the role of the Chinese Government
(12th 5 yr plan)
Intro: Role of Government vs. Role of Party
• It’s glorious to be rich (Deng Xiaoping) vs. the creation of a Harmonious
Society
• China’s 12th 5 year plan on Green Economy, Green Growth, sustainability
• Role of SOEs to trickle down to SMEs
• Explosion of GRI reporting in Chinese Companies
• New anti corruption measures, new legislation underway
• From CSR as philanthropy to integrated CSR in business strategy, China is
lagging behind but catching up rapidly.
4. 2. In-depth A: Challenges for Westerners in the Chinese Culture
1. Western Associational (Gesellschaft ) vs. Non- Western
Kinship ,(Gemeinschaft) Models of Organizational Behavior and decision
making.
2. The culture and thinking in. ᾿Rule of Man’ vs᾿Rule of Law῀
3. Western ᾿High Trust῀ vs. ᾿Low Trust῀ Business Culture (Francis Fukuyama)
4. Ethic of Covenant/Contract (European ,Calvinist Christian) vs. Ethic of Filial
Piety/Xiao (Confucian)
5. Western᾿Guilt῀ (Responsibility) Culture vs. ᾿Shame῀ Culture (Face-Saving)
Source: Prof D.McCann, Hongkong
5. 3. In-depth B: Western problem solving vs. Chinese/ Asian Balance thinking
6. 4. Chinese Characteristics in CSR- Where does CSR have effect in China?
Answers from Academics and philosophers
• The Practices of Self-Cultivation: Daoism, Confucianism, Buddhism
• The Ideal of the Gentleman᾿Junzi῀, The Importance of ᾿Ritual῀ (Li)
• A virtue ethics or way of thinking, learns by doing (Confucius) and Teaches
by setting an example- walking the talk.
Chinese Culture is beneficial for CSR implementation IF:
1. We are openly respectful of the existing Culture and environment.
2. Implement CSR practices using Chinese Didactic tools (trickle down, walk
the talk).
3. Emphasis on Balance, in stead of fixing a problem.
7. 5. How does CSR implementation work in China, the role of Educational
institutions
• Harmonious Society as a working title for local, regional CSR strategy in
China- alignment needed with Chinese ideals.
• Close relationship with provincial, local Government on identifying what is
needed in local business environment. (ISO 26 000 useful toolkit)
• Educational institutes are now working on CSR management programs,
since 2004 CIBE, since 2012 in BNU, CASS, Peking University, CEIBS, etc
• Post Grad and management training based more on Case Study research,
learning in the workshop. CIBE Case Study Institute initiative
• Educational institutions involved in policy making (UN CAC) in China,
rapid growth of legislation.
• Students want change…
8. 6. Trends and solutions for Businesses and Academics ,Macro- Meso Level
1. Trend : Local reports, CSR guidelines, instead of only international guidelines
(insufficient, ex. Gift giving/ bribery need of more focus and thought)
2. Trend: CSR becomes branch specific (GRI 4 guidelines), Industry Associations
make own CSR programs
3. Trend: CSR debates take place not only B to B, B to supplier, B to stakeholder,
B to government, but Industry Association to Industry Association
*(internationally)
4. Trend: Chinese CSR Case Study research , local CSR Fora and debates for
SMEs
5. Trend: Chinese (500 milj.) Internet is watch dog for consumers
*GIZ sino- german csr project
9. 7. Trends and Solutions for Businesses, Micro level
1. Trend: Learning by Doing, show case on a regular basis how you are
working safe, sustainable to your suppliers. Show them the numbers of
how much energy (money) you have saved on micro level.
2. Trend: Highlight and reward best practices regularly for your suppliers
(Marel Example)
3. Try to think and talk with Chinese thinking, i.e. Balance, Harmony etc.,
when possible and appropriate.
Walk the talk , be an example of a responsible leader in
all facets of life.