Published on December 26, 2008
Social Responsibility in China How it affects your business and How to integrate it in your business strategy Johnny Browaeys ES Operations Director
Overview China Today Challenges facing the players Success stories
China today World’s largest emitter of CO2 75% of cities suffer water shortages 90% of fresh water is polluted > 130,000 workplace fatalities /yr >700,000 cases of occupational disease /yr >16,000 environmental shutdowns and rising Middle Class growing fast Rising environmental awareness Hungry for resources and energy
11th 5 Year Plan Policy Shift (2007) “To build a harmonious society” 1.Circular Economy 2.Energy and Natural Resources Security 3.Social stability and Urban/Rural Disparity 4.Development of Second Tier Cities Regulatory framework ~ US/EU • But how about enforcement?
Th eV oic e of t he Co un t ry
Blo The ggin Voi g ce of t he P Court hearings eop Protests, blockages, delays le
Challenges for the players Never ending pace of new regulations • Legal incompliance Inconsistent regulatory enforcement • 山高皇帝远 (The Mountains are High and the Emperor is Far Away) Lack of resources, equipment and experience Lack of awareness/care of local suppliers Increasing awareness/criticism of buyers “Get rich fast / first”
Trends Equator Principles to manage “China Risks” Shenzhen and Shanghai Stock Exchange “Instructions on Social Responsibility” Development and Reform Committee urged State-Owned Enterprises to embrace Corporate Responsibility “Super” Ministry of Environmental Protection
Reputation Risk for players in China • China is hot- High profile media attention. • China is not as bad as Western media describes… • nor is it as good as Chinese media describes Adoption of local vs international standards • Would you operate to this level back home?
Success Stories Paper Company securing finance by sustainable forestry Mining company beating 2 others to the deal with sustainable mining Chemical factory ensures continuity of the operations by assisting suppliers with Chemical Registration Metal manufacturing company increases reputation and cooperation by engaging retired workers to rebuild the local community Electronic consumer goods company saving costs by engaging local suppliers in their own upgrade to reach more buyers
What to take home… 1. Understand the challenge for the players 2. Integrate them in your business strategy 3. Strive for genuine mutual interest 4. Leverage your reputation
CH2M - CHINA History in China Initial Presence: CH2M HILL’s early efforts in China involved the design and construction of large textile mills. Above: The Yu Yuan Cotton Mills in Tientsin (Tianjin Today) in 1915 and the main entrance of the Washing Textile Company in 1917. CH2M HILL’s 90 years of experience in China has delivered 1,000’s of successful industrial projects for our global multi-national clients in China.
CH2M HILL China Staffing / Capabilities Staffing Project Management 38 Procurement Logistics 16 Construction Management 85 EH & Safety Professionals 29 Mechanical & Process Engineers 38 Civil / Structural Engineers 19 Architects 18 Electrical & Controls Engineers 23 Cost Engineers 12 Schedulers 7 Water / WWT Engineers 12 Cleanrooms 46 Administrative & Support 36 379 Total • Consulting Commissioning Project Management • • • Validation • Site Search • Design & Engineering • Operation & • Procurement • Environmental Maintenance • Construction • Government Permitting CH2M HILL Office founded in China Since 1996.
事在人為 “ Whether the goal can be achieved all depends on human effort” Johnny.Browaeys@ch2m.com - +86 1376 1894 720
Some Thoughts to Take Home Confucius and Napoleon “keeping the order is most important” Character Language “how to translate Product Stewardship?” Descartes / Voltaire and “Dao” “truth can serve a purpose” Face and Sunzi “everything has a content, package and purpose”
Global water and air volume (SPL Reference Number: E055/330) Water sphere of 1390 kilometers across, volume of 1.4 billion cubic kilometers. Air sphere of 1999 kilometers across, weighs 5140 trillion tons.
Author: Johnny Browaeys - ... Final China08 Johnny Browaeys Csr In Business Short presentation on how "Doing The Right Thing"... 6 months ago. Business.
... Professor of CSR, Business Ethics and Socratic Dialogue at ESADE Business & ... Business Development Director (CSR) at East London Business Alliance