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2011•Multinationals’ Corporate Social Responsibilities Problem Report

 

In recent years, the issue of Corporate Social Responsibility (CSR) on part of Multinational Corporations (MNC) has become an area of increasing scrutiny and debate. For instance, some MNCs pollute the ocean and soil, some manufacture unsafe machines and equipments, some produce unsanitary food and drugs, and others market their products as imitators of superior quality, thereby setting a price trap for consumers. Such behavior is not only a serious deviation from the commitment of social responsibility, but also a detriment to consumer interests and trust in MNCs. Even though deviant behaviors may not be all-encompassing, such clear lack of CSR negatively affects the corporation’s public image and is condemned by society.

 

China International Council for the Promotion of Multinational Corporations (CICPMC) specializes in the work of MNCs in China. More than 10 years since its establishment, CICPMC has operated under the tenet of “promoting exchanges and cooperation for the Chinese-foreign enterprises [and] impelling the growth and development of multinationals.” We greatly value the promotion of enterprise development and in doing so urge enterprises to not only implement social responsibility but become models of responsible behavior. . At the year’s end, we released the <2011·Multinationals’ CSRProblem Report>.

 

The report includes a large representative selection of 2011 MNC social responsibility issues in China. These issues include: damage to public interests, bribery, pollution and disruption of market order. The companies covered in this report are mostly the Global 500, and located in the developed countries such as USA, UK, Germany, France and Japan, and of course, China.

 

As a mainstay in the current global economic development, multinational corporations have significant influence on the economic environment and consumer life. In the early 1990s, after an American clothing manufacturers Levi-Strauss was exposed by news media for sweatshop, it developed the first copy of corporate production rule to save its public image. Under the pressure from labor unions, human rights organization, and consumers, many MNCs established their own production rules, which become referred to as “Enterprise Production Regulation Campaign”. These production rules were aimed to directly stimulate the enterprises to carry out their social responsibility.

 

However, the production rules established by the multinational companies have an obvious commercial purpose, and its implementation did not receive social supervision. Under the labor and human rights organizations, the non-governmental organizations promotion, this campaign by the corporation self-discipline and internal production rules is changed into social and external ones.

 

In 2000, the UN formally started the Global Compact plan; in 2004, the International Organization for Standardization created “ISO26000,” which actively promotes corporate social responsibility as an accepted trend for harmonious development of enterprises that function with societal conscience.

 

<2011·Multinationals’ CSR Problem Report> is the first release by CICPMC, and will be published annually. This report is aimed at promoting social and public supervision of MNCs to fulfill its obligations, reminding relevant MNCs that