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Article

6 Jun 2006

Author:
Brian Ho, CSR Asia

[PDF] Shenzhen stock exchange instruction on CSR [China] [scroll to p.4]

Shenzhen Stock Exchange (SZSE) released a three-page document on 7 June entitled "Instructions for Listed Companies on Social Responsibility (Draft for Comments)", which asked listed companies to implement good CSR practices and become model businesses...The Instructions suggest listed companies should be responsible to stakeholders…Of interest…is the actual content of the instructing document…The third part (Protection of the Rights of Employees)…mentions the general requirements surrounding labour in the CSR field; i.e., no forced labour, good health and safety systems, working hours, paid leave, overtime, no discrimination of any sort, social security, and training. It is interesting that these issues, which are usually addressed to labour intensive industries in China, are included as suggestions for large listed companies on the SZSE…Instructions have an advisory purpose and there is no stated legal obligation for members to follow the guidelines...However, in most cases, companies will make an effort to follow instructing documents because to some extent it does represent the Chinese authorities.