China has the second largest economy in the world followed by the U.S. In 2012, China was the 18th fastest growing economy. (www.economywatch.com) In 2013, China became the world’s largest exporter. $2.21 trillion worth of production was exported around the world. China also manufactures for business from other countries.
Corporate Social Responsibility (CSR) has gained its importance as an essential activity for corporate nationally and internationally. It has become a matter of utmost importance for diverse groups demanding change in the business orientation. From 1980 to 2000, corporations recognized and started accepting a responsibility towards society. CSR implies some sort of commitment, through corporate policies and action. This operational view of CSR is reflected in a firm's social performance, which can be assessed by how a firm manages its societal relationships, its social impact and the outcomes of its CSR policies and actions.12 The term ‘corporate social performance’ was first coined by Sethi (1975), expanded by Carroll (1979), and then refined
China holds a considerable advantage on its main rivals on the world economic scene today: 70 % of the population is of active age (15-59 years), against 65 % in Brazil, 62 % in India, 60 % in the Western Europe or in North America, and 54 % in Japan. There are an exceptionally low proportion of economically dependent people in China. This " demographic bonus " contributes to stimulate the economic growth, but it will not last. From 2050, China will count 220 million people of active age at least than at the moment. The reduction in the fertility and the extension of the duration of the life do not stop upsetting the structure by age of the Chinese population.
1. Introduction In 2015, China's economic growth rate slowed down, but the per capita disposable income of the whole country increased by 7.4% in real terms, and the GDP grew by 6.9% in the same period. At the same time, in the distribution of income aspect, there are still many problems and challenges, which is mainly shown on the proportion of household income in the national income distribution, big income gap between industries and income gap is even larger between different group of workers. The Report on China's population and labour (2016) notes that China's gender wage gap is widening. According to the Survey on the status of women in China, the average female wage in China's urban employment in 1990 was about 77.5 percent of male wages,
The increasing number of foreign investors in China will have negative impact on the economy without government’s intervention. Without government intervention infant industries will not benefit from low taxes and incentive for exports and will fail to compete in the free trade causing unemployment in the country. Secondly with resource allocation, Chinese government controls the resources based on comparative advantage helping domestic firms to specialize based on cheapest resource available. The availability of the resources increases the output of domestic firms; this will improves the balance of payment of a country because of the increase in value of export compared to the import. Lastly the dynamic mechanism states that growth can be sustained by introduction of new technologies, foreign investments and from imports.
This sharing and diversity of religious thought greatly shaped the Chinese Empire as a divine culture and in intellectual advance. Thirdly, uncommon in other civilizations the peasantry in China was ranked relatively higher than usual , where in many civilizations the common man is ranked at the bottom of the social pyramid. The fact that the peasantry has given a larger dose of power, it kind of adds a democratic spice the Chinese social hierarchy, even though China was a democratic civilization, in that a portion of the power belongs to the people. The final major positive Chinese society was that the Chinese youth was greatly disciplined and respectful of the older. Majorly impacted the various belief systems, especially Confucianism, Chinese children were greatly obedient and respectful if their parents and to elder family members.
Insisting that Chinese employees follow American principles further undermines loyalty to the company. Loyalty to the suppliers and others intensifies and loyalty to the company is declines. Measures were introduced to deal with this. There has been a strong voice calling for China's own responsible production standards, particularly with regard to labour standards. Some suppliers of textile and apparel industries have tried gain leverage against foreign standards by forming associations and creating their own standards.
Though the writing is based on the CSR in Western Europe but it gives an introductory idea about how CSR works with different institutional environment. According to Jackson - Corporate social responsibility (CSR) is often seen as a strategic response to pressure from stakeholders who may be adversely affected by company practices, or as a pro-active attempt by firms to pre-empt or at least mitigate these pressures and enhance the reputation and value of the corporation. Much research has aimed to establish the business case for CSR by examining its relationship with economic performance. Parallel to these efforts, other literature has focused on the moral and ethical justifications for CSR independent of its potential economic utility. (
As opposed to the USA, U.K and Europe which experienced their industrial revolutions in 18th and 19th centuries, China experienced massive industrial revolution in the past 30 years. The industrial sector in China has been growing at an approximate rate of 8 percent during the 1970’s. China’s population grew rapidly. Prior to industrial revolution, most people in China were employed in the agricultural sector. In 1960’s China recorded an increase in investment, and started signing contracts with foreign firms for construction of facilities for chemical production, steel as well as oil extraction and refining.
The change of economic policies have gained a significantly improvement in government planning and interest in foreign investment was greatly increased, especially in special economic zones with taxes and regulations exempted in which they became one of the key factors to push the growth of the national economy in China in early 1990s. In 2000s, structural change and globalization meant large-scale privatization continued, Chinese government reduced trade barriers and tariffs with foreign countries in order to increase international trade and more foreign investment in China. Furthermore, China became the member of World Trade Organisation in December 2011 and the economic system consisted of more than 50% of GDP contributed by private sector in 4 years time, first time to surpass Japan, which was the largest economy in Asia by