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10 Mai 2006

Mary Ho & Richard Welford, CSR Asia, in CSR Asia Weekly

[PDF] Power, protests and the police: The shootings at Shanwei [China]

[scroll down to p. 4] On 6th December 2005, a number of local villagers were killed and several more were injured during a protest in Shanwei, Guangdong, Southern China, over claims relating to inadequate compensation for land seizures by the government to build power plants... Protestors also pointed to the alleged irresponsibility of the company causing over 30 fatalities during the construction of the power plant. The company at the centre of the incident was the Guangdong Red Bay Generation Company Limited (GRBG)...owned by three companies namely, Guangzhou Development Industry Holdings (GDIH), Guangdong Yudean Group (Yudean) and Guangdong Electric Power Development (GEPD)... [includes detailed day-by-day timeline of events around shooting]... the story leads to a number of questions that must be considered by companies involved in good corporate social responsibility practices: • How should a company involved in a development project of this type deal with problems associated with potential land and compensation disputes? • Should an organisation such as the IFC, or any financial institution...provide loans to companies involved in this project? What might have been done to identify and mitigate possible risks from protests? • If there are protests against a project of this type, how should the businesses involved in those protests deal with the situation?...[Business & Human Rights Resource Centre invited the companies to respond to the allegations. Guangdong Yudean response is below; Guangzhou Development Industry Holdings, Guangdong Yudean Group and Guangdong Electric Power Development declined to respond]