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Article

24 Mar 2015

Author:
Karen Pong, CSR Asia

China: Study shows weak enforcement is an obstacle for CSR development

“New study shows weak enforcement biggest obstacle for further CSR development in China”, 18 Mar 2015

Weak enforcement of legislation is considered the major obstacle in the development of sustainability in China…according to a new study on Corporate Social Responsibility development presented by the Embassy of Sweden and CSR Asia…

Approximately 82 per cent of the respondents…are not satisfied with the current state of CSR development…CSR is better developed in major cities such as Beijing, Shanghai and Guangzhou with many multinational companies and headquarters of Chinese enterprises...

The study shows…there is a solid framework of both labour and environmental legislation, but it is poorly enforced…[C]ompliance with legislations and regulations is perceived as the most important incentive for companies to implement CSR…[L]abour practices is an area where the companies generally have improved the most. The environmental performance of companies is ranked among the least addressed issues...

Overall…the understanding and implementation of CSR is considered unsatisfactory and still largely limited to philanthropy and acts of charity….[T]he study shows that there is confidence in the future of CSR in China…Transparency, corruption prevention and ethical behaviour are other areas expected to gain…importance.