Acknowledgement



Acknowledgement

The accomplishment of this thesis benefits of the help and direction from my dear supervisor—Prof. Mammo Muchie. Prof. Muchie is always happy and willing to help me solve the confusions and direct me approach to the final result of the thesis. On top of that, Prof. Muchie is an easy-going and open-minded person, whom is also a good friend to me. Without his encouragement, I would not finish this final work in my master study. Thank you very much, Mammo!

Furthermore, I would like to show my grateful feeling to Prof. Li Xing, who once taught me and was my project supervisor in the 8th semester. Prof. Li is a warm-hearted and discipline-keeping person, with whose supervision I accomplish my master study in time. He is always patient to help me out with questions in terms of administration and rules. Thank you very much, Li!

Abstract

Corporate Social Responsibility (CSR) as an American academic concept has already been discussed for more than four decades in the academic field and adopted by the corporations in the developed countries for more than 20 years. Now it is blossoming in China, which has become an important part of the supply chains for the capitalist world system. Under the international context and the domestic context, the four major players in CSR implementation—the Chinese government, the subsidiaries of TNCs in China, the SOEs and the NPOEs—have different understandings and performances in reality.

In this thesis, I am going to explore how do the four players understand CSR by asking two questions: 1. How does the Chinese Government understand CSR and what policies does it issue? 2. How do the Corporations in China (SOEs, NPOEs and subsidiaries of TNCs in China) react and perform in CSR implementation?

Abbreviation

CSR Corporate Social Responsibility

UN United Nations

ILO International Labour Organization

WTO World Trade Union

TNCs Transnational Corporations

SOEs State-Owned Enterprises

NGOs Non-Governmental Organizations

SAI Social Accountability International

SA 8000 Social Accountability 8000

ISO International Organization for Standardization

NPOEs Non-Public Owned Enterprises

FDI Foreign Direct Investment

PRC People’s Republic of China

GDP General Domestic Product

AA 1000 Account Ability standards 1000 series

SR Social Responsibility

OECD Organization for Economic Cooperation and Development

CPC Communist Party of China

CSPGP China Society for Promotion of Guangcai Program

SMEs Small-Medium Sized Enterprises

RMB Renminbi

SGCC/ SG State Grid Corporation of China

ACFTU All China Federation of Trade Unions

CNCP China National Petroleum Corporation

Content

Acknowledgement……………………………………………………………………i

Abstract………………………………………………………………………………ii

Abbreviations………………………………………………………………………..iii

Chapter 1 Introduction

1. Background

1.1.1 Background of CSR Under the International Background………………………….……1

1.1.2 Background of CSR in China…………………………………………………………….4

1.2 Problem Formulation…………………………………………………………………….……..7

1.3 Methodology……………………………………………………………………………………8

1.3.1 Information and Data Collection…………………………………………………………9

1.3.2 Theory Study…………………………………………………………………………….11

1.4 Chapter Introduction…………………………………………………………………………..14

Chapter 2 Theory Reviews

2.1 Overview of CSR……………………………………………………………………………..15

2.2 Milton Friedman’s View on CSR……………………………………………………………..16

2.3 R. Edward Freeman’s Stakeholder Theory……………………………………………………19

2.3.1 The Notion and History of Stakeholder Approach………………………………………19

2.3.2 Process of Stakeholder Management……………………………………………………21

Stakeholder Analysis for Enterprise Strategy…………………………………………..22

Values Analysis for Enterprise Strategy………………………………………………..22

Social Issues Analysis for Enterprise Strategy………………………………………….23

Chapter 3 Empirical Part

3.1 The principles from the International Organizations………………………………………….25

3.2 The Policies or Reports from Chinese Central and Local Governments……………………..27

3.2.1 Policies and Guidelines from CPC and the Central Government……………………….28

Policies towards FDI…………………………………………………………………….28

The 11th Five-Year Plan and Harmonious Society……………………………………….28

Amendment of the Law on Employment Contract………………………………………29

Amendment of Company Law of PRC…………………………………………………..30

Guangcai Program………………………………………………………………………..31

3.2.2 Report from Jiaxing City Government, Zhejiang Province……………………………31

Self-Awareness of CSR………………………………………………………………..33

Public Perception of the CSR Implementation in NPOEs……………………………..33

Factors that Affect CSR Implementation by NPOEs…………………………………...35

3.3 CSR Implementation in Both Local Corporations and TNCs in China……………………….36

3.3.1 TNCs’ Case Study—Wal-Mart…………………………………………………………..38

3.3.2 CSR Understanding by Chinese Corporations………………………………………….40

SOEs’ Understanding and Performance………………………………………………..40

NPOEs’ Understanding…………………………………………………………………41

Chapter 4 Analysis

4.1 The Government’s and the CPC’s Understanding of CSR…………………………………….42

4.1.1 The External and Internal Factors That Affect the Government’s Attitude of CSR…….42

4.1.2 The Measures Adopted by the Government on CSR Implementation…………………..44

4.2 The Subsidiaries of TNCs’ Understanding of CSR………………………………45

Wal-Mart Case Study…………………………………………………………….46

4.3 The SOEs’ Understanding of CSR……………………………………………….47

4.4 The NPOEs’ Understanding of CSR……………………………………………..49

Chapter 5 Conclusion………………………………………………………………50

Reference……………………………………………………………………………54

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