A mindset for CSR and Sustainable Development in China (2012)

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by Bill Valentino, China Institute of Social Responsibility

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  • 1. A Mindset for Corporate Social Responsibility and Sustainable Development in China BILL VALENTINO

2. INTRODUCING SOME BIG IDEAS !!!!! 3. ABOUT Me .. BILL VALENTINO Professor Deputy Director China Institute for Social Responsibility - School of Social Development and Public Policy Adjunct Professor International Communications Retired July 2011 VP Corporate Social Responsibility (China 1987 2011) 4. SOME MORE ABOUT ME .. Communications, Computing and Technology Instructional Design and Media/Adult Learning MA Thunderbird School of Global Management MBA 5. A CHALLENGE FOR EDUCATORS!The challenge is to prepare this nextgeneration for what promises tobecome a labor market where everyjob will depend on sustainability,collaboration and the creation ofsocial, environmental and economicvalue. 6. A CHALLENGE FOR EDUCATORS!the greatest barrier that companiesand the government will encounter isthe shortage of a workforce withknowledge and training in CSR,sustainability, entrepreneurship,social innovation, philanthropy andknowledge how to manage publicprivate partnerships and non-for profitorganizations.. 7. A PROGRAM FROM BNU TO MEET THAT CHALLENGEBNUs MPA China Development CSRcurriculum to train a CSR, Sustainability,and PPP literate workforce that is criticalto long-term development, the privatesectors integration into society and thedevelopment of meaningful employmentopportunities for this discipline. 8. CSR in ChinaCSR AND SUSTAINABILITY CHINA ! 9. CSR in China A BALANCING ACT IN CHINA ! 10. CSR in ChinaWHY CSR IN CHINA MATTERSChina is rapidly evolving and is asserting itsleadership over the sustainability agenda on theinternational economic and policy stage.As Chinas influence in international markets and onthe global policy stage increases active engagementin CSR in China offers an opportunity toinfluence one of the most powerful forcesshaping the landscape for global business andsustainable development.SOURCE: Corporate Responsibility and Sustainable Economic Development in China: Implications for Business Simon Zadk,Maya Forstater, and Kelly Yu , US Chamber of Commerce March 2012 11. CSR in China The struggle for balance is analogous to a struggle for order and harmony. Confucian thought that sees the establishment of an universal order as the ultimate purpose 12. CSR in ChinaEnvironmental & SocialDevelopmentEconomic DevelopmentA single-minded pursuit of economic growth and opening-up over the pastthree decades has had huge benefits but also huge costs. 13. CSR in China PEOPLE PLANET the widening gap between rich and poor pollution and extensive environmental an income gap between interior areas and deteriorationcoastal regions an income gap between urban and ruralpopulations unemployment poverty corruption poor labor conditions an inadequate health-care system, 14. CSR in China Scientific Outlook on Development putting people first and aiming at comprehensive, coordinated and sustainable development. 15. CSR in ChinaA Scientific Outlook on Development A shift in the focus from "economic growth" to "social harmony".CSR Harmonious Society Scientific Outlook onDevelopment Harmonious Society A people-centered society, 16. CSR in China Harmonious Society the idea changes Chinas focus from economic growth to overall societal balance 17. CSR in ChinaTHE ANALOGY OF A STOOL WITH 3 LEGS Balance = Sustainability and Stability 18. CSR in China A STOOL MISSING 2 LEGS Environmental Stewardship & Social Development Imbalance = Unsustainability and Instability 19. CSR in China BALANCE Harmonious Society 20. CSR in China Chinas Leaders Left Brain TrainedDeng Xiao PingSun Yat-sen University,Marxism / PhilosopherJiang ZeminShanghai Jiao Tong UniversityElectrical EngineerHu Jun TaoTsinghua University Hydraulic EngineerWen Jia BaoBeijing Institute of GeologyGeologist & Engineer Xi Jinping TSINGHUA University ChemicalEngineer 21. CSR in ChinaCHINA1978 ------------------20123 DECADES OF HARMONIOUS SOCIETYPHENOMENAL WITH CONTINUEDECONOMIC GROWTHECONOMIC GROWTHAND DEVELOPMENTAND DEVELOPMENT SCIENTIFIC OUTLOOK ON DEVELOPMENT 22. CSR in ChinaCORPORATE SOCIAL RESPONSIBILITY & SUSTAINABILITYConceptual= HarmoniousBALANCE = ECONOMIC PROGRESS WITH SOCIAL & ENVIRONMENTAL PROGRESSBALANCE PROFITS + SUSTAINABLE BUSINESS TO ACHIEVE STABILITY & ASUSTAINABLE FUTURE 23. CSR in ChinaStabilityInstability 24. CSR in ChinaAN OVERVIEW OF CSR IN CHINA:1. Chinas rapid economic rise has led to social and environmental challenges that must be addressed to avoid weakening the nations ability to sustain economic growth and development progress in decades to come.SOURCE: Corporate Responsibility and Sustainable Economic Development in China: Implications for Business Simon Zadk,Maya Forstater, and Kelly Yu , US Chamber of Commerce March 2012 25. CSR in ChinaAN OVERVIEW OF CSR IN CHINA:2. The role of business in addressing these challenges is increasingly recognized and is reflected in the call for, and practice of, corporate social responsibility (CSR).SOURCE: Corporate Responsibility and Sustainable Economic Development in China: Implications for Business Simon Zadk,Maya Forstater, and Kelly Yu , US Chamber of Commerce March 2012 26. CSR in ChinaAN OVERVIEW OF CSR IN CHINA:3. CSR in China has evolved rapidly beyond its roots in philanthropy and compliance. Forlarge companies, CSR is increasingly astrategic concern, addressing issues such asemployee management, product quality,governance, andhuman rights.SOURCE: Corporate Responsibility and Sustainable Economic Development in China: Implications for Business Simon Zadk,Maya Forstater, and Kelly Yu , US Chamber of Commerce March 2012 27. CSR in ChinaAN OVERVIEW OF CSR IN CHINA:4. Drivers of CSR in China are also shifting toward becoming embedded in Chinas own global brand and way of doing business.SOURCE: Corporate Responsibility and Sustainable Economic Development in China: Implications for Business Simon Zadk,Maya Forstater, and Kelly Yu , US Chamber of Commerce March 2012 28. CSR in ChinaAN OVERVIEW OF CSR IN CHINA:5 Domestic Chinese pressure is rising for CSR.Chinese citizens are increasingly finding ways toexpress collective displeasure over perceivedpoor corporate practices.SOURCE: Corporate Responsibility and Sustainable Economic Development in China: Implications for Business Simon Zadk,Maya Forstater, and Kelly Yu , US Chamber of Commerce March 2012 29. CSR in ChinaAN OVERVIEW OF CSR IN CHINA:6 Chinese businesses are raising the bar forcompetition as they work to meet internationalstandards of responsibility as part of theirstrategy for moving up the value chain.SOURCE: Corporate Responsibility and Sustainable Economic Development in China: Implications for Business Simon Zadk,Maya Forstater, and Kelly Yu , US Chamber of Commerce March 2012 30. CSR in ChinaAN OVERVIEW OF CSR IN CHINA:7. The most important driver in recent years has been the increasingly close relationship between CSR and public policy. The Chinese government has embraced CSR as a tool to help address social and environmental issues resulting from rapid but uneven economic transition.SOURCE: Corporate Responsibility and Sustainable Economic Development in China: Implications for Business Simon Zadk,Maya Forstater, and Kelly Yu , US Chamber of Commerce March 2012 31. CSR in ChinaAN OVERVIEW OF CSR IN CHINA:8. CSR will continue to evolve rapidly, with pressure from the state and, increasingly, from citizens. A significant dynamic to watch will be the interaction between pressures from the state and from citizens mobilizing, forexample,through new social media.SOURCE: Corporate Responsibility and Sustainable Economic Development in China: Implications for Business Simon Zadk,Maya Forstater, and Kelly Yu , US Chamber of Commerce March 2012 32. CSR in ChinaCHINAS SOCIAL AND ENVIRONMENTAL CHALLENGES Water scarcity and quality Industrial pollution and greenhouse gas emission Labor conditions Product safety Inequality and economic Corruption Access to health care and Public Health Rural Development SOURCE: Corporate Responsibility and Sustainable Economic Development in China: Implications for Business Simon Zadk, Maya Forstater, and Kelly Yu , US Chamber of Commerce March 2012 33. CSR in ChinaREPORTING CSR IN CHINA:CHINAS FIRST ENVIRONMENTAL PROTECTIONREPORT LAUNCHED ON NOV 29th IN BEIJING 34. CSR in ChinaREPORTING CSR IN CHINA: Research on CSR Reporting in China (2001-2009) Reveals Four Main FindingsMain findings:Finding 1: Rapid growthFinding 2: Starting stageFinding 3: Significant differenceFinding 4: Huge potentialSource: http://csr-china.net/en/ 35. CSR in China REPORTING CSR IN CHINA:Research on CSR Reporting in China(2001-2009) Reveals Four Main Findings Finding 1: Rapid growth Chinese CSR reports are drawing unprecedented attention as evidenced by the fact that 582 CSR reports in various forms were released in 2009, 3.44 times that of 2008 (169 reports), an exploding growth. This figure is expected to account for about 15% of global total in 2009, as opposed to 5% in 2008.Source: http://csr-china.net/en/ 36. CSR in China REPORTING CSR IN CHINA: Finding 1: Rapid growth 1.Examples of leading enterprises. In recent years, China saw a large number of leading, active corporate players in CSR field, the forerunners and pioneers who drive rapid development of Chinas CSR reporting practices. 2. Strong guidance of government policy. The Chinese government pays much attention to implementation of corporate social responsibility by enacting a series of policy documents in recent years encouraging enterprises to publish their CSR reports, which have been well echoed by numerous enterprises. 3. Active promotion of social actors. Shanghai Stock Exchange, Shenzhen Stock Exchange, China Federation of Industrial Economics, China National Textile and Apparel Council and China Banking Association, among others, encou