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

1. Corporate Social Responsibility in China
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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
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3. Defining CSR
Social Responsibility
Responsibility of an organization for the impacts of its
decisions and activities on society and the
environment , 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 relationships
Source: ISO 26000 Guidance on Social Responsibility
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4. Rationale for CSR in Emerging Economies
1. Emerging economies represent the most rapidly expanding
economies, and hence the most lucrative growth markets for
business
2. 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.
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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.
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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 a
migration 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
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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
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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
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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.
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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
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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
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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
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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
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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”
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15. Introducing CSR to Intermediaries
Development of CSR action plans for Chinese industry associations and
chambers of commerce, e.g. China Chamber of Commerce for Import and
Export 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
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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
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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
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18. Development of CSR Reporting
Number of CSR Reports Published in China 2005-2010
750
663
Number 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
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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
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20. Improving Recruitment of Workers with adidas
Capacity Building for Migrant Workers
Objective
 To ensure a just and fair recruitment as well as better treatment of migrant
workers in supplier factories
Measures
 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 life
Results
 Capacity of 356 villagers was built up
 Migrant workers became better prepared for factory work
 Two suppliers of adidas recruited 23 high-quality staff
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21. Improving Labour Conditions in Toy Production
Objective
 Improving access to information, training and support related to compliance
with health, safety and labour standards for toy factory workers in China
Measures
 Development of training materials
 Trainings for toy factory workers
 On-site visits and consultancy services
Results
 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
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22. Summary of CSR Experience with Companies
Capacity building and advisory services to individual Chinese and international
companies 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
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23. Thank you for your attention!
Contact:
Rolf Dietmar
Project Director
Sino-German Corporate Social Responsibility Project
+86 10 8419 5686
rolf.dietmar@giz.de
www.chinacsrproject.org
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