Stakeholder Capitalism in China
CFO Magazine has an interesting article about China in the most recent issue: View From China: Stakeholder Capitalism. In short, the author touches on cultural differences, such as the absence of “the concept of a company’s responsibility to society, beyond what is owed investors,” as well as the difficulties many large “semi-independent” corporations face in reining in any environmental damage they cause.
“While lip service is paid to corporate social responsibility on environmental issues, the reality is that pollution in China is at a crisis level yet companies seem unconcerned.
“…Most Chinese companies are still struggling to enforce more internal controls to protect shareholder value. It is high time for them to address the needs of other stakeholders, such as communities that suffer via environmental mishaps or unchecked pollution. Soon enough, a disaster could emerge that will cause even the most growth-hungry China investors to vote with their feet.”
TAGS: This entry was posted on Wednesday, March 29th, 2006 at 12:34 am and is filed under China, Corporate Social Responsibility, Social Enterprise. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.