Corporate Social Responsibility - Tristan Vaca Narvaja

8/12/2019 Corporate Social Responsibility - Tristan Vaca Narvaja

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CorporateSocialResponsibilityPresentation by

Tristn Alberto Vaca Narvaja


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The concept of CSR The company should not only aim at making the

maximum profits for its shareholders, but also considersocial welfare.

Areas

Product safety

Environmental protection Labor rights

Human rights

Community development

Corruption

Not only attend the interests of shareholders, but alsothose of other stakeholders. (Employees, consumers,suppliers, and local communities)

Global Supply Chains.


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Increasing Importance of CSRIn China

Companies makes profit in a social context

They provide services and products to fulfill the

needs of the society Green Economy. (Building a harmonious society, is

the long-term goal of the Chinese socialism)

The reduction of pollution emissions has beenintroduce since the 10thfiveyear plan.

Recent growth of public and private initiatives.


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CSR initiatives in China

Company Law (Art. 5)

General principles of Corporate Social Responsibility

Corporate Social and Environmental Disclosure

Socially Responsible Investing and Environmentally Responsible

Financing

Public initiatives

CSR Standards and Guidelines

CSR Organizations, Forums and Awards

Private Initiatives


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Company Law - Art. 5 Article5: When undertaking business operations,

a company shall comply with the laws and

administrative regulations, social morality andbusiness morality. It shall act in good faith, acceptthe supervision of the government and thegeneral public, and bear social responsibilities


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General Principles of Corporate

Social Responsibility (2008) State-owned Assets Supervision an Administration Commissionof the State Council (SASAC) released it. It expects the SOEs to

become leading examples for all Chinese companies.

Reasons Promoting social Harmony

SOEs are the backbone ofChinas economy, security,

affecting every aspect ofChinese peoples living

Sustainable development

ContentsComplying with the law and business

conduct

Increasing profitably

product and service qualityEnvironmental protection

Innovation and technology

Production Safety

Employees rights

Actively engaging in charity.


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Socially Responsible Investing and

Environmentally ResponsibleFinancing

CSR

CorporateFinancial

Performance

Green credit policy

Use of financial channels to improvecorporate environmental performance

Green securities

Environmental performance reviewswhen applying for initial public offeringor refinancing


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China Coal EnergyCorporation - 2008

Failure to:

strictly implementenvironmental impactevaluations

Phase out outdated facilities Install environmental

protection facilities requiredby law

Emissions exceeding thepermitted level


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CSR initiatives in China

Company Law (Art. 5)

General principles of Corporate Social Responsibility

Corporate Social and Environmental Disclosure

Socially Responsible Investing and Environmentally Responsible

Financing

Public initiatives


CSR Organizations, Forums and Awards

Private Initiatives


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HOWEVER,it is more about long-term goals ratherthan immediately required standards. The evaluation process is controlled by the Responsible

Supply Chain Association, whose members are thesame companies subject to the evaluation process.

CSC9000T (imitating ISO14000, the internationally-recognized environmental management tool)

Provides objectives in the areas of management system,emplyment contract, child workers, forced orcompulsory labor, working hours, wages and welfare,

trade unions, occupational health and safety


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Is CSR an alien concept to theChinese culture?

Ideology of Orthodox Confucianism

Hostile to profit-

making businessBusiness org. using akingship cloak

Social responsibilitieswith the family andthe communities

Buddhism and Daoismcombined with theConfucianisminduced a culture ofdiligence, honestyand charity amongbusinessmen.

1731: Qing Dynasty edict

the ideal way for awealthy household toperpetuate itself ()is dispensing relief

and aid to the poor

SOEs

Before the economicreform, a SOE was

not only a productionunit but also a socialservice center.

Its not the same


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Pros Cons


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Pros Cons


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Pros Cons

Social andenvironmental standardsin global supply chains

Increase of costs of

production


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Pros Cons


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Pros Cons


production

Internal consumer isimmature


US and Europeanconsumers care


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Pros Cons


production

Internal consumer isimmature


US and Europeanconsumers care


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Pros Cons


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Sanlu Milk Powder(2008) Biggest milk powder

manufacturer in china

A batch of formula producedwas tainted with melamine,

the chemical that wasinvolved in a pet food recalllast year when thousands ofanimals in the US were taken illor died.

Melamine, which is used inplastics, fertilizers and

cleaning products, should notbe used in food, but adding itmakes food appear higher inprotein when tested.


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Pros Cons


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Pros Cons


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Conclusions

CSR is not window dressing, buta requirement for corporatelong-term development.

As stakeholdersboth in Chinaand around the worldcontinue to place an increasingemphasis on responsiblecorporate citizenship,companies in China are likely tomaintain and expand their CSRefforts for the foreseeable future.

Indeed, companies are alreadygoing beyond legal.

Sustainable economy is not achoice.


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Conclusions

Documents

Corporate Social Responsibility - Tristan Vaca Narvaja