Often when we think about CSR and China an image of big Western multinationals and sweatshops come to mind. But as the Chinese economy develops and foreign direct investment (FDI) out of China increases we start to see the flipside of the CSR coin. How will Chinese companies navigate the rules of engagement when it comes to CSR in the West?
Australia is a perfect example, the amount of FDI from China into the Australian mining industry is significant. How Chinese companies engage with their local staff, environment and culture is critical to their success.
As I read in a recent article Social responsibility – key element of Chinese companies’ success in Australia, Chen Feng, chairman of China’s Hainan Airlines Group said:
It was not easy for Chinese companies to do business in Australia due to differences in culture, concepts and business rules.
And that
Corporate social responsibility and making positive contributions to society are keys to his [Chen Feng] group’s success in business development in Australia.
I have seen frustration and mismanagement as a result of a lack of cross-cultural understanding in both Chinese and Australian employees working for Chinese companies in Australia. Australia has a strong labor union culture and environmental and sustainability awareness is high. Chinese companies need to learn how to engage and communicate with their local communities and employees about these issues if they are to successfully do business in Australia.
How Chinese companies approach CSR when they’re not on their home turf is going to be a very interesting progression and, I think, a huge learning curve.
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