Towards A Socially Responsible China

Abstract

The proper handling of Codes like the "Global Compact" of the United Nations is still quite new in China. On the positive side, it can be seen as a framework of what Corporate Social Responsibility (CSR) is all about, which is accepted and promoted by the Chinese government through various initiatives. However, the in-depth research into companies which signed the Global Compact strongly suggests that there is still a wide spread ignorance of the concrete content and the implicit demand for transparency and accountability of such a code. For further progress of the implementation of the "Global Compact" there needs to be more decisive and combined efforts to properly communicate how an ongoing process of communication, messages from different layers of leadership, training seminars inside the committed institutions conducted on a regular basis could enhance and communicate to all stakeholders the specific and realistic meaning of Codes in a given context. In order to be truthful, this may always pinpoint to concrete difficulties of Codes. Actually a proper whistle-blowing mechanism should be in place so that inappropriate business practices could be dealt with while securing the confidentiality of the Whistle-Blower. Instead of just being afraid to lose face, the challenge to address thorny issues related to the ten principles should be seen as a mutual learning opportunity. Special care should be given that the codes should be aligned to Business Strategy. Ethical codes are still quite often viewed – certainly not only in China – as a set of nice ideas, which do not work in practice and are often suspected to seriously harm its own competitive advantage. Codes need to be conceived as help to assist its adherence to shape their specific brand. The article argues to honor, on one side, the first approaches to acknowledge the relevance of Corporate Social Responsibility. On the other hand, it leaves no doubt that much stronger efforts must be taken in order to align the vital business interests with an ongoing implementation of codes in order to get the desired social impact.