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CSR now a 'done deal' in business

By Xin Zhiming (China Daily)
Updated: 2007-11-08 07:06

Business leaders and politicians vowed to put more emphasis on corporate social responsibility yesterday at the two-day 11th Business Week CEO Forum.

As the global economy steadies, environmental and social issues have been increasingly incorporated into business policymaking, as companies look beyond profit-taking.

"Five years ago, the idea and concept of corporate social responsibility was just germinating," said John Defterios, group president of FactBased Communications, a European media and entertainment group, at the forum.

But, "today, it's a done deal", said Jenny Shipley, former prime minister of New Zealand.

Shipley said companies will find it hard not to develop consciousness of social responsibility if they want to sustain their success.

"In order for corporations to continue to be reputable, either in their home economies or globally, they've got to be seen - in addition to meeting their shareholders' expectations - to be delivering something in what I would call eco-influence or socio-influence areas that are meaningful."

There are two parts to corporate social responsibility - the social aspect and sustainability, said Edgar Hotard, chairman of Monitor Group (China), a US management consultancy.

"The social aspect is about giving back to society and helping society," he said, citing China National Offshore Oil Corp's programs to help underdeveloped areas through funding and its staff.

Awareness of social responsibility will ultimately benefit the company, he said.

"It's not like you want to do it in order to get something back; but in doing this, it is going to help my business," he told China Daily.

He suggested Chinese companies join forces with the government to make the air and land cleaner as the country's development path puts pressure on the environment.

"More and more Chinese have been involved in this," he said.

Niu Gensheng, chairman of Mengniu Dairy Group, said that while many Chinese firms have yet to reach a stage where they can shoulder the cost of corporate social responsibility, it gave priority to the environment from the start.

The dairy producer began a project in 2004 using cow manure to produce a biogas that generates electricity for civil use. The company produces 800 tons of cow manure every day.

"By doing this, farmers are happy, society is happy, those drinking milk are happy and those realizing that we are not damaging the environment are happy," he said.

Daniel McHugh, CEO of DHL Express Asia-Pacific, said the firm has also prioritized social responsibility.

"We realize what we do, we do for our customers. And moving around the world has a carbon impact."

Shipley said companies will face more pressure on social and environmental issues in the future.

"I want to tell you that the game has changed.

"In the next decade ... corporations would not be shielded, as they historically were, from what citizens and consumers now see as corporate social responsibility."

She said social responsibility will become central to corporations' business strategies over the next decade.