Foreign companies operating in China are often proactive in addressing corporate social responsibility initiatives in their businesses. For American companies, the American Chamber of Commerce in Shanghai has been one of the most active participants in organizing firms to build sustainable practices in the Middle Kingdom.
Brenda Foster is the president of the American Chamber of Commerce in Shanghai. Originally from the State of Hawaii, her Chinese roots began when she majored in Chinese language and literature at the University of Washington. In 1972, while still a university student, she served as a translator to the first group of Chinese gymnasts to visit the United States and afterwards had the opportunity to lead numerous delegations from the U.S. to China and build networks with Chinese government entities, businesses, organizations and individuals.
What sort of community outreach initiatives has the Chamber implemented over the last year, and what are you planning for the coming year?
AmCham Shanghai has a very strong corporate social responsibility program that is continually growing and expanding. One of our most important initiatives is the Make a Difference Corporate Volunteer Program, which aims to connect American companies with the local community by providing them with opportunities to engage in volunteer activities. In 2006, AmCham Shanghai expanded this program from an annual day-long event to a year-round initiative. Every month, new projects are listed online so member companies can get involved. Our goal is to expand this key program to Hangzhou and Suzhou so we can make a positive impact on the whole Yangtze River Delta area.
Secondly, AmCham Shanghai has also established the Migrant Children Integration Program. This program will enable us to work in partnership with schools for migrant children in Shanghai to provide them with learning and development opportunities.
Lastly, AmCham Shanghai is also dedicated to improving healthcare in rural China and has partnered with the Shanghai Soong Ching Ling Foundation to work on improving medical care for women and infants in China's poorest regions. All proceeds from AmCham Shanghai's 2007 “Showboat�? Charity Gala to be held on April 14th, will benefit the Foundation's mother and infant care program.
Through the annual AmCham CSR Conference and Awards, a comprehensive CSR strategy has been effectively communicated to member companies, NGOs, media, government agencies and raised awareness of the benefits of 'doing well by doing good' with key stakeholders and the wider community.
How receptive are Chamber member companies to these initiatives and what sort of support do you get from the local community and government?
The AmCham Shanghai membership has been very responsive to our CSR initiatives. In 2006, the program engaged 16 companies and 10 local NGOs. We have been working together to fulfill 2000 plus volunteer hours. Active participants in the AmCham CSR program include Grace China, Saint-Gobain Research Co., Deloitte, Goodyear, GE, Manpower, Corning, Ashland, Briggs & Straton, Bovis Lend Lease Projects Co., B&Q, Amway, Coca-cola, Disney, PMI and Eaton China.
The local community has also welcomed such initiatives and got involved. The Jiang Chuan Community (Jie Dao) in Ming Hang District for example has been actively supporting Grace China's year-round CSR program and created a win-win-win situation for all stakeholders.
What can American companies learn from China in implementing corporate social responsibility in their business processes?
We can not take a 'one size fits all' approach with CSR programs. American companies need to adapt their CSR programs to the conditions in the regions where they invest and undertake business. China is a vast country with diverse social and economic conditions, and American companies need to learn from local stakeholders about the needs and challenges of each region. CSR programs that may be effective in other parts of the world may not necessarily be suitable or priorities for local communities in China. Through cooperative partnerships with local government, NGOs and community representatives, American companies can learn about priorities which are important to creating and implementing CSR programs which target China's current needs.
Good corporate citizenship is very much a journey rather than an end in itself and while many benefits can be measured in monetary or in operational terms, many other benefits are intangible but make a strong, ongoing impact on all the stakeholders.
CSR frequently focuses only on community outreach, but how else is the Chamber engaging stakeholders to discuss corporate governance, labor issues, environmental safety, and business transparency?
AmCham Shanghai's CSR program has five major focuses: community outreach, philanthropy, environmental stewardship, corporate governance and employee health and safety. We have been actively engaging all our stakeholders through a variety of initiatives. Our on-going projects and events include: holding joint workshops, one with the Ministry of Civil Affairs and the Asia Foundation on private sector participation in disaster management and another with the local EPA, Chinese companies and academics on waste treatment; running seminars on corporate compliance and governance issues; facilitating workshops on climate change and sustainable development; and sponsorship of the 2007 Special Olympics World Summer Games in Shanghai.
How are American companies balancing challenges with opportunities when they operate in China?
From the big picture perspective, AmCham's business climate survey shows that China continues to present attractive opportunities to American businesses and almost all respondents were optimistic about prospects for continued success. Companies do however wrestle with a range of challenges, including China's regulatory regime. AmCham plays a key role in providing an assessment of the issues and challenges to both American and Chinese governments, the corporate sector and the public.
In our experience, the key factors for those American companies which have been successful in China are that: they recognize the need to bring leading business and management skills and technology to the China market; they take into account Chinese market characteristics; they adhere to the highest ethical standards when doing business; and they strive to be a responsible contributor to the community in which they operate. This approach to doing business in China flows from the corporate governance philosophy of the company, through to employee management and training, modern production facilities and environmental standards compliance.
Business and the community are interdependent – government agencies and NGOs have made it clear that some of the biggest problems can not be tackled without participation from the private sector. A partnership approach between business and the community needs to be adopted to maximize the impact and overall success of CSR programs.
Going forward, why should foreign and domestic companies make CSR a key component of their activities in China?
CSR programs are increasingly seen as an integral part of delivering business prosperity and sustainable economic growth. AmCham companies involved in CSR report benefits to reputation and the bottom line – they identify new markets and products, attract and retain high quality and motivated staff and make efficiency gains. People value working for a company that is also a good corporate citizen.
Increasingly the CSR program is becoming a key component in the way companies do business and run their operations. All companies, foreign and domestic, big business and SMEs, need to consider the impact on the community and the environment in which they operate and work and partner with stakeholders on CSR programs to achieve common goals and meet local needs.
