How China implements CSR internationally

Chen, chairman of China's Hainan Airlines Group, in a recent interview with Xinhua, said it was not easy for Chinese companies to do business in Australia due to differences in culture, concepts and business rules.

However, the Hainan Airlines Group, the parent of China's fourth-largest airline, Hainan Airlines, has managed to absorb an Australian business and establish a new company in Australia affiliated with the Hainan group, Chen said.

Chen believes that corporate social responsibility and making positive contributions to society are keys to his group's success in business development in Australia.

"In order to help the host country eliminate misunderstandings and prejudice and gain better acceptance of Chinese enterprises, we should integrate social responsibility into business development while making a contribution back to society," Chen said.

The Hainan Airlines Group recently acquired the aircraft leasing business of Australia's Allco Finance Group. The acquisition was made through the Hong Kong Aviation Company, a consortium that includes Bravia Capital Partners and the Hainan group.

Chen said that in order to become more competitive in Australia, the new company cooperates with Allco in terms of capital, technology and personnel.

"We adopt international management standards for the expansion of the staff team to serve the local market and have created more job opportunities," Chen said. "This initiative has not only gained support from the Australian and Chinese government but also won support from local people."

The Hainan group began the acquisition of Allco's aircraft leasing business in late 2008 and gained the approval of the Australian Foreign Investment Review Board in January.

Chen said that although the acquisition was a success, the new company still faces many difficulties, such as fund management and how to deal with cultural differences.

"The solution is based on the original team with the appointment of a German CEO and allowing overseas staff to work in China, let them experience the vigorous development of China and Hainan Airlines Group, a pioneering culture to strengthen cohesion," he said.

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Tags: CSR, Corporate Social Responsibility, Sustainability, china, corporate responsibility, corporate social responsibility, microfinance, social media, sustainable development

Comment by Ken Lee on August 16, 2010 at 8:46pm
Here are some more stats about China and CSR:

- Chinese subsidiaries have not yet seen their responsibilities beyond their legal requirements and their immediate stakeholders, and there is a significant gap between headquarters’ and subsidiaries’ attitudes towards CSR.
- Chinese executives, who were working for five ‘‘good’’ American MNEs, could not comprehend how their areas of sales and marketing relate to the values of CSR. They perceived that corporate social programs should be done by their human resources department or a few high-ranking staff members.
- The values of corporate social responsibilities were not integrated with their functional strategies, performance appraisal, and reward structures. As a result, many Chinese employees often demand financial incentives to devise and deliver CSR initiatives.
- Many Chinese executives are willing to learn corporate socially response programs if these programs can strengthen their managerial and organization skills, which increase their competitiveness in the global market economy.

Here is another report on China and CSR.

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