THE UNIQUE CONCEPT OF CHINESE CSR

107

newcomer care surveys at the expiration of one week, one month and two months after registration… For other employees, regular education and training will be arranged, and monthly meetings will be held to review, emphasizing important concepts such as corporate social responsibility, asset security and confidentiality, and anti-corruption.” (Iv6 Huang Hsiang Construction Corporation).

“In order to ensure that the product quality is leading and uniform, we adopt the seamless whole process quality management system (QCM) from raw materials to production and then to the market, and introduce the most stringent international food safety management system (AIB) to control the product quality in advance, during and after the event, so as to ensure that the products purchased by consumers are always satisfactory.”

(IV8: HAOLIYOU FOOD CO., LIMITED)

not mandated by law to practice CSR. Van den Ven et al. (2018) write that economies from other parts of the globe can learn from China whereby even small organisations practice CSR so as the ensure the people and the environment are safeguarded. As noted from the persons who were interviewed, the Confucian and Taoism traditions are at the centre of a majority of Chinese businesses whether big all small, which demand respect for humanity and socialism.

As noted in Table 13.0 below, four interviewees gave insightful information regarding the unique concept of Chinese CSR:

Table 13.0: The Unique Concept of Chinese CSR

Source: Author

Note: Memo count denotes the separate number of interpretations the researcher made to certain parts of the respondents’ answers

The responses of the interviewees were as follows:

“Specifically, the CSR discussed in China has been mixed with many shadows of Confucianism and Taoism” (IV1-President of WangWang).

“According to our long-term observation in the Chinese market, at present, the general cognition of CSR in Chinese business circles is basically similar to Confucianism. After all, Confucianism is still the mainstream in Chinese business circles. Confucianism is an ideological system that spreads from the inside to the outside by sincerity, integrity, self- cultivation, family harmony, governance, peace of the world” (Iv7 President of HAOLIYOU

109

FOOD CO., LIMITED)

“The idea of maintaining multi-ethnic groups and shaping national ideology has always been a topic that the elite leaders of the ruling party dare not ignore. In fact, this is also closely related to the Confucius thought we talked about earlier, such as the doctrine of the mean and the harmony thought. For enterprises, the focus is not only on how to set their own CSR goals, but also on how to achieve and refine these goals, walk out of the road with Chinese characteristics, and continue to find the focus of the next stage, continue to grow and contribute every year, while maintaining the traditional virtues of China…” (IV9: Chairman of Shandong Energy Group).

It was only one of the participants who thought that mainland China’s laws also help in promoting CSR, not just the Confucius thought.

“In the mainland, the legal provisions are still the most crucial, although Ping An pays special attention to stakeholders” (Iv12-Ping An Insurance).

The main cross-strait CSR differences are highlighted in Table 14.0 below:

Table 14: Comparative Analysis for Cross-Strait CSR Development

Taiwan China

Basic Implications

At the definition level, the Western CSR concept is widely accepted. The prevailing

international CSR framework is directly applied, such as using SDGS as a reference for target setting and adopting the GRI standards for disclosing CSR reports. However, following the idea of Chinese essence and Western utility, many concepts from the theory of Confucian entrepreneurs are integrated in practice.

In the early stages, the international definition was directly adopted, and then the theory of Confucian

entrepreneurs was applied. In addition, the environment of socialist ideology also brought about qualitative changes to CSR. For example, owing to the influence of the concept of social harmony, CSR in mainland China also includes dimensions different from those defined by Western CSR, such as fair operation and win–win cooperation.

Policies and Regulations

In 2002, the Investment and Business Office of the Ministry of Economic Affairs began to

In 2002, the China Securities Regulatory Commission issued the ‘Code of Corporate

Taiwan China promote CSR.

From 2002 to 2004, the Small and Medium Enterprise

Administration of the Ministry of Economic Affairs held seminars to promote CSR, develop business ethics counselling, encourage public safety and consumer rights and commend firms that achieved excellence.

In 2006, the Executive Yuan established the National Council for Sustainable

Development and incorporated CSR into its mission Statement.

In 2010, the Taiwan Stock Exchange issued the ‘Corporate Social Responsibility Best Practice Principles for TWSE/GTSM Listed Companies’.

In 2014, it was made mandatory for some domestic listed

companies to prepare CSR reports annually.

Governance for Listed Companies in China’.

In 2003, State Environmental Protection Administration (SEPA) issued the

‘Announcement on the Disclosure of Environmental Information by firms’, in

accordance with the ‘Law of the People’s Republic of China on Promotion of Cleaner

Production’.

In 2005, Corporate Law was amended to stipulate that firms must comply with laws and regulations, abide by social morals and business ethics, be honest and trustworthy, accept the supervision of the

government and the public and assume social responsibility.

In 2008, SASAC issued the

‘Guidelines to Chinese State-owned Enterprises on Fulfilling Corporate Social

Responsibilities’.

In 2009, the Shanghai Stock Exchange published the ‘CSR Report Preparation Guide’.

In 2017, the General Research Bureau of SASAC published the first ‘Research Report on Corporate Social Responsibility of Central Firms’ based on the resolution of the 19th Session of National Congress.

Quantitative Indicators

1. Corporate social policy and performance management system

2. Disclosure and

communication of social and ethical information

3. Science and technology development/technology transfer

4. Working hours, wages and benefits, workplace safety and health practices, employee education and training, freedom

1. Employee rights and benefits (i.e. discrimination, labour organization and collective bargaining, child and underage labour, forced or compulsory labour, labour contracts, working hours, compensation and benefits, harassment and abuse and occupational health and safety)

2. Environmental protection and energy conservation

3. Customer and consumer

111

Taiwan China

of association and assembly, prohibition of child

labour/forced labour and employee severance 5. Equal opportunity

6. Consumer rights and interests 7. Supplier codes

8. Social participation 9. Anti-bribery

10. Fair competition

11. Environmental policy and performance management system, environmental capacity building, environmental

information disclosure, development of green products/services and eco-efficiency of products and services

12. Financial

policies/management systems, corporate financial performance and corporate governance practices

rights

4. Win-win cooperation 5. Fair operation

6. Community participation 7. Cultural building

8. Charity development 9. Scientific development and scientific foundation

10. Management systems 11. Environmental protection 12. Fair competition

13. Integrity and sustainable development

Development trends

Issues related to environmental protection are the most basic of CSR and are the main direction of CSR implementation in Taiwan.

The scope of social welfare identified by the CSR in Taiwan has also extended to education and science, art and culture, economy and agriculture, medical care and sports.

Strengthening internal and external CSR projects for firms to achieve sustainable

cooperation

Guarantee and assurance are projects that Taiwan actively attaches importance to in recent years. The number of CSR reports compiled by Taiwanese firms in recent years has set new records.

The fact that more firms in Taiwan are responding to SDGs and disclosing their engagement

Focusing on environmental protection, health care, food safety, culture and education and community integration and beginning to attach importance to SDGs

A triple coexistence of catching up, integration and leadership From the government to firms to social organizations, firms are exploring measures such as industrial poverty alleviation in the field of targeted poverty alleviation.

ESG investment concepts will gradually become the

investment philosophy of mainstream investment institutions.

All trades compete for the greater good. Public welfare has become a business imperative.

Taiwan China in SDGs shows that there is a

trend for Taiwanese firms to align with international standards.