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Business / Economy

Private firms more diligent in CSR activities

By Zhu Wenqian (China Daily) Updated: 2014-09-17 08:42

Private enterprises from China have made significant advances in generating economic value and toward philanthropy, said a report on the corporate social responsibility accomplishments of such enterprises.

The report, prepared by the All-China Federation of Industry and Commerce, was the first documented and disclosed information on the social responsibility of private enterprises in China. It tracked the progress of CSR activities made by private enterprises in the country during the past two decades.

"The report tracks the economic accomplishments of China's non-public sector, entrepreneurs and their business philosophies," said Wang Qinmin, president of the federation.

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"Private enterprises in China have made significant contributions to the economy and have been more resilient in facing complicated situations and challenges," Wang said.

Most of these companies have also maintained long-term and sustainable growth by operating with credibility and integrity. Moreover, they have shown great zeal in protecting the environment, and contributed to worthy causes and fostered innovations to achieve further growth, Wang said.

The private firms have made contributions to the overall economy with their sustained efforts in investment and innovation generation, he said.

Suning Commerce Group Co Ltd has been ranked the top private enterprise in China for three years in a row, while Legend Holdings Ltd occupied the second spot among the top 500 Chinese private enterprises, said a report released by the federation last month.

"Private enterprises in China expanded with more operating revenue on the strength of innovation, and the application of new equipment and advanced information technology," said Tan Lin, secretary of the federation's economic department.

The report, which has several case studies, shows that actively fulfilling social responsibility can help private enterprises with branding, improving staff loyalty, and attracting more customers.

On the other hand, the strength of social responsibility fulfillment will help private firms gain more trust from the government.

The government has been more than willing to help break the monopolies, and encourage private enterprises to face competition in the international marketplace, which in turn would lead to higher earnings, said the report.

"Research shows that social responsibility fulfillment is positively related to the performance of a firm. This is the fundamental driving force for private enterprises in China to voluntarily fulfill social responsibility," Wang said.

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