There’s a great post at CEO Ethics about Pricing Corporate Social Liabilities. The post links to an article on CSRwire.com and gives a great overview of the main points the CSRwire article touches on. Check out both if you are interested in social responsibility in business.

TAGS: Ethics | Social Responsibility | Corporate Citizen | Liability

There have been a few interesting articles about China in the past few days, though most have been focused on the U.S.-China textile agreement. I’ve listed a few that are good reads below, beginning with an article about the trade agreement:

• China, U.S. Agree to 3 - Year Trade Pact (NYT): “China and the United States agreed Tuesday to a three-year pact to limit Chinese clothing and textile imports, a deal that will help the beleaguered U.S. industry but cost the average American family $10 to $20 annually in higher clothing bills. Even with resolution of the textile fight, many trade issues remain, from theft of U.S. computer programs to Chinese manipulation of its currency. And with the trade deficit with China expected to approach a record $200 billion this year, the Bush administration will be under pressure to do more.”
• India and China Take On the World and Each Other (NYT): “India-China trade had already been growing at a phenomenal rate, reaching $13.6 billion last year - a sevenfold increase from 1998. Companies have said their new investments are critical strategic moves aimed at profiting from the other country’s rapid rise.”
• Chinese Leader to Meet Blair About Trade (NYT): “[Chinese President Hu Jintao] said China was working hard to build ‘a moderately prosperous society, featuring a more developed economy, improved democracy, advanced science and education, a more prosperous culture, greater social harmony and higher living standards for the entire 1.3 billion people.’”
• China Repressive in Tibet Despite Talks: Dalai Lama (NYT): “‘From our side we made every effort to create a positive atmosphere,’ said the Dalai Lama. However, he added, the Chinese government showed ‘no sign of improvement or some leniency inside Tibet’… ‘Still things are very, very repressive,’ said the Nobel Peace Prize winner and prolific author of spiritual books.”
• Yahoo in China to Promote Search Engine (NYT): “Wednesday’s announcement by Jack Ma, chief executive officer of Alibaba.com, highlighted the intense rivalry in China’s market of more than 100 million Internet users. Alibaba took control of Yahoo’s China sites in a deal in August, in which Yahoo bought 40 percent of the Chinese company… He said Alibaba would cooperate with the communist authorities if they sought information on ‘politically sensitive information’ sent by a Yahoo e-mail customer.”

TAGS: China | News | Trade | International | MBA

Whoa. Check out one of today’s front page NYT articles, “Dispute Leaves U.S. Exectutive In Chinese Legal Netherworld“. That’s some pretty hairy stuff. Here’s the first few paragraphs of the article:

“David Ji, a Chinese-American electronics entrepreneur, spent two months in custody enduring all-night interrogation sessions, but his stubbornness and occasional flashes of sarcasm infuriated his Chinese captors.

“So in late December last year, according to a person who compiled a record of the encounter, guards emptied his pockets, removed his shoes and socks, and ripped the buttons off his oxford shirt. He was ushered disheveled and barefoot into the office of Zhao Yong, the chief executive of Sichuan Changhong Electric, Mr. Ji’s onetime business partner and, more recently, his warden.

“‘Your only way out is to do what Changhong tells you to do,” Mr. Zhao told him. “If I decide today I want you to die, you will be dead tomorrow.’”

TAGS: China | Ethics | Social Responsibility

…rather, it goes to war against reluctant customers. Indeed, the reluctant customers are identified as the ones who are actively campaigning against the the 3 million pound gorilla. Interestingly enough, they seem to be employing the same tactics.

Both sides have retained political advisors and operatives in the quest to squash the opposition. The New York Times has a great article (A New Weapon for Wal-Mart: A War Room) about the conflict, epic or not, that is being duked out despite the unlikely outcome that either party will cave. While I find it humorous that instead of addressing and adequately fixing the issues it is so passionately criticized for, Wal*Mart instead chooses to employ political manipulation to attempt to sway the dissenters.

It doesn’t make a whole lot of sense, but it sure makes for great news.

TAGS: Wal*Mart | WalMart | Union | Ethics

I found a great article this evening on corporate social responsibility (CSR) in China that does a great job of making the case that CSR isn’t just good for society, but also good for business. Check out Charity CASE from China Daily. Following are a few interesting points from the article:

“Many multinationals and leading domestic companies are taking part in various social causes; most say that they are just being responsible corporate citizens and do not expect any returns from charity.”

I wonder how many, “Many multinationals” actually is…

“‘The first thing people need to understand around corporate social responsibility is that the business case is very strong. If you look at any survey, all other things being equal (such as price and quality), the consumer will buy from the company that has a responsible attitude towards its community.

“‘In recruitment, people want to work for a company with a responsible social attitude.

“‘Business needs the community in which it operates and a company can play major role in that community. There is a clear moral case in corporate social responsibility and the business case is very strong. What is important now, given recent corporate scandals, is that companies must be seen to be doing it and not just talking about it. There is a danger that corporate social responsibility is seen a [sic] smokescreen for greed and profit.’

Those are great statements. The business case actually is very strong and it is interesting how few companies actually understand that dynamic. However, I wonder how many individuals truly care whether or not a potential employer has a “responsible social attitude”. I also really like the acknowledgement that there could be a connection, or perception of a connection, between CSR and simply creating a smokescreen to make more money.

“According to Wu Changqi, vice-dean of Guanghua School of Management which is affiliated with Beijing University, responsible corporate citizens, in addition to paying taxes and making donations, should protect and conserve the environment, provide job opportunities in the local economy, guarantee employees’ safety and welfare, as well as contribute to the local social network….

“But Chinese corporate giants do not have high-profile missions, or communication strategies.

“CCF statistics shows that there are over 13 million registered companies in China, fewer than 100,000 make donations.

“As Edward Tse, managing director of Booz Allen Hamilton for China, said at a recent China Daily CEO Roundtable on CSR, Chinese companies have always been socially responsible, but “for different reasons” and usually in a narrow sense.

“They tend to focus on employees rather than the bigger community. As Chinese companies expand overseas, they’ll have to realize that there is a set of universal values that corporations should observe.”

Cultural differences? Perhaps. It will be interesting to see what happens as Western businesses and Chinese businesses continue to intermingle and work together. Will one contingency outweigh the other, or will we see a co-mingling of ethical principles and practices?

TAGS: China | CSR | Charity | Ethics | Social Responsibility