China's CSR progress
Chinese mining group CCCMC said last month that it was introducing guidelines to promote socially-responsible behaviour among its units overseas.
The move, which has support from the OECD, is being hailed as a potential breakthrough in the image of Chinese mining, which accounts for most of China’s US$90 billion (Bt3 billion) direct overseas investment but has long been perceived as insensitive to environmental and social concerns.
The guidelines cover such areas as labour rights, environmental protection and community relations. They are designed to ensure Chinese companies avoid causing harm to host countries.
German development agency GIZ and natural-resource advocacy group Global Witness helped in the drafting of the guidelines.
These days, it’s not just Chinese mining companies that are raising their CSR profile. Other Chinese industries, including textiles, rubber and forestry, are also working on similar guidelines.
Inevitably questions come up as to whether these moves signal genuine commitment by Chinese industries to catching up to international best practices, or are geared to mainly appeasing clamorous lobby groups and smooth the way for further investment.
But perhaps the mix of these motives does not matter much so long as the outcome is positive.
In any case, a cynic might argue that many Western companies’ CSR activities are designed to attract investors who increasingly need to tick the “right” boxes when making choices of where to park their money.
These include both the corporate governance component of CSR related to financial and legal rules and the embrace of ethical and other actions that go beyond formal requirements.
Regardless of the motive, the Chinese mining initiative is just the latest indication that Chinese companies are taking CSR more seriously, at home and abroad.
For example, in 2012, more than 1,700 Chinese companies filed CSR reports, compared to just one in 2006.
It’s important to note that China-watchers are urging patience, saying wider implementation of the policies will take time.
The mining group made a commitment to the OECD to issue more detailed directives for execution, and plans to promote the guidelines on its website and through training sessions and direct communication with companies.
While this may be seen by some as a baby step, it is a big stride forward from 10 years ago when CSR in China was barely known.
Certainly, if China succeeds in truly embracing socially-responsible business and investment, the benefits will be appreciated by all.
