The Top-Down Model: A Discussion of Corporate Social Responsibility Policy in China

Abstract

Corporate Social Responsibility (CSR) has gained significant
prominence in China in the period after the reforms and opening-up of
the Chinese economy which ushered in the separation of corporate
management and state administration as well as the integration of the
Chinese economy with the global economy. Since then, the Chinese
government and citizens have realized the need to hold enterprises
responsible for the effects of their activities on society; and hence began
to formulate CSR policies, and to integrate relevant laws, incentives,
supervision and control mechanisms in corporate regulations. In 2001,
China’s accession to the WTO provided a platform for international
reference and exchanges for the development of CSR policies. In 2006,
CSR was recognized by the country’s highest authority in legal form
for the first time, which also meant that CSR became a national
economic development strategy and policy. Unlike the private sectorled CSR in Europe and North America, this study shows that CSR in
China is mainly a government-guided phenomenon and more popular
among state-owned enterprises (SOE).In this light, we opine that the
improvement of CSR policy and practice in China requires reforms
designed with special consideration of the unique characteristics of the
Chinese society to encourage stakeholder involvement in the policy
formulation and participation in the implementation process.